$12.1trn Investment Required To Meet Global Oil Demand – OPEC

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After raising its forecasts for world oil demand in the medium-and longer-term in an annual outlook released on Monday, the Organisation of the Petroleum

Exporting Countries, said $12.1 trillion of investment is needed to meet this demand despite the energy transition.

The view from the OPEC, in its 2022 World Oil Outlook, contrasts with that of other forecasters which see oil demand reaching a plateau before 2030 due to the rise of renewable energy and electric cars. Another decade of oil demand growth would be a boost for OPEC, whose 13 members depend on oil income.

The group has been arguing that oil should be part of the energy transition and that focus by investors on economic, social and governance issues has worsened an investment shortfall. “The overall investment number for the oil sector is $12.1trillion out to 2045,” OPEC’s secretary general, Haitham Al Ghais wrote in the foreword to the report, which said the figure was up from last year’s estimate.“However, chronic under investment into the global oil industry in recent years, due to industry downturns, the COVID-19 pandemic, as well as policies centered on ending financing in fossil fuel projects, is a major cause of concern.

 

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