OPEC says continued investments in oil projects crucial for global energy security

The global energy industry has to ensure that investments to the oil industry continues to flow despite a changing landscape, and any big shift in focus could potentially act as a stumbling block for energy security as well as create a volatile market, OPEC Secretary General Haitham al-Ghais said.

“We need to reiterate that the misguided notion of no longer investing in new oil projects would undermine the security of energy supplies and lead to major volatility,” he told the India Energy Week Conference in Goa.

Global oil demand growth is forecast to far outpace the expected rise in non-OPEC supply over the next two years, OPEC said on Jan. 17, as the producer group charts its course to manage the market ahead. In its closely watched monthly oil market report, OPEC estimated the world’s thirst for oil to increase 2.25 million b/d in 2024 and another 1.8 million b/d in 2025.

Ghais said the twin focus of the Indian government to pursue both fossil fuel growth as well as renewables is the right path to adopt.

“The Indian government has said consistently that the future will require all forms of energy, which is a message that OPEC fully supports,” Ghais said.

Strategic partnership
Given India’s future energy needs for its expanding and aspirational population and the fact that OPEC member countries provide approximately 60% of India’s total crude oil imports, this strategic relationship would continue to be vital in the years and decades ahead, Ghais said.

“India will play a vital role in the future of the industry. According to our forecasts, oil demand in India is set to rise from 5.1 million b/d in 2022 to 11.7 million b/d by 2045. It will be the country with the largest oil demand growth over this period,” he added.

Commenting on the evolving global energy industry, he said it has never been more important to work together and adopt a holistic, practical and inclusionary approach as the world concentrates on the task of providing energy security for all while reducing emissions.

“We continue to be aligned by the need for every nation and people to have their energy transition pathways. It is not a uniform energy transition for all. There are multiple pathways to take. There is no one-size-fits-all solution to a sustainable energy future,” Ghais said.

“No single source of energy will be able to fuel the global energy demand,” he added.
Source: Platts