KUALA LUMPUR: Global energy demand is expected to increase by 23 per cent to 110 million barrels of oil by 2045, with crude oil making up 29 per cent of the energy mix, said the Organisation of the Petroleum Exporting Countries (Opec) today.
Opec secretary general Haitham Al Ghais said a massive energy expansion is required as the global economy is growing more than double and the world’s population is reaching 9.5 billion by 2045.
“Moreover, as we all know, there remains a critical need to bring modern energy services to those billions that continue to go without basic energy access in many parts of the world, including in Asia.
“Once we must continue to provide more energy to the world, we also recognise the need to continually reduce emissions and to decarbonise, subscribing to global best practices,” he said at the leadership address on the state of the industry and the role of Opec here today.
Al Ghais said renewable energy would play a much greater role but crude oil would remain an integral part of the mix and is irreplaceable for the foreseeable future.
He noted that chronic underinvestment in the industry, not just oil, but across all energies, is putting the viability of the whole energy system at stake.
“In our World Oil Outlook, for the oil industry alone, investment requirements equate to US$12.1 trillion, or over US$500 billion each year between now and 2045.
He stressed that all industry policymakers and stakeholders need to work together to ensure a long-term investment-friendly climate, with sufficient finance available.
“One that works for producers and consumers, as well as developed and developing countries,” added Al Ghais, noting that there were appeals to ensuring a stable and sustainable oil supply and also calls to end financing in oil projects.
“The two sentences simply do not fit together. Let me ask investors in the audience today: would you invest if you do not see the security of demand, particularly in an industry where returns can take a decade or more?” – BERNAMA
