The Secretary General of Organisation of Petroleum Exporting Countries (OPEC), H.E Mohammad Sanusi Barkindo, is urging oil producing countries to create investment friendly climate to encourage investors.
The oil industry, he noted, is faced with underinvestment and “this was exacerbated by the Covid-19 pandemic.
“Over the course of 2020, investments declined by 30 percent. We need to work towards creating an investment friendly climate,” he said.
He was speaking at the 11th IEA-IEF-OPEC Symposium on Energy Outlooks, via video conference.
The OPEC scribe said: “At the 14th edition of our OPEC World Oil Outlook, which was launched on October 8 of last year, stated global primary energy demand is forecast to continue growing in the medium and long term, rising by a hefty 25 percent by 2045.
“Oil will remain the largest contributor to the energy mix in 2045 at 28 percent,” he stated.
To meet this future demand in the global oil sector, he said would need cumulative investment of $12.6 trillion in the upstream, midstream and downstream through to 2045.
“These investments are essential for both producers and consumers,” he added.
While there are grounds for optimism that 2021 would be the year of recovery for the oil industry, Mr Barkinso indicated that there are many uncertainties ahead.
“As the IMF recently stated, much now depends on the outcome of this race between a mutating virus and vaccines to end the pandemic, and on the ability of policies to provide effective support until that happens. There remains tremendous uncertainty and prospects vary greatly across countries.
“Furthermore, other factors can have a disruptive impact on the energy industry. As the extreme weather in Texas has shown, we cannot take energy security for granted, even in a country like the US.”
An Arctic blast has disrupted electricity supply and demand has surged to record heights.
Oil and gas production has plummeted by a third and five million people across the country face the freeze without heat or power.
Source: www.energynewsafrica.com