Global Investment Needs in the Oil Production Sector Estimated at $17.4 Trillion Until 2050
The global investment needs in the oil production sector until 2050 are estimated at $17.4 trillion, stated Haitham Al Ghais, Secretary General of OPEC.
“Hydrocarbons still account for 80% of today’s energy mix, just as they did in the 1980s. (…) Today, the world continues to consume more and more oil every year. These are facts and primary data,” Haitham Al Ghais said on Monday in Baku at the opening of Baku Energy Week.
The text of the OPEC Secretary General’s speech was published on the website of the President of Azerbaijan.
According to him, in fact, last year the consumption of gas, coal, oil, and renewable energy reached record levels worldwide.
“The world needs more of all types of energy, and I emphasize ‘all types of energy,’ given population growth, urbanization—especially in developing countries—economic growth, and new energy-intensive sectors such as artificial intelligence and smart data analytics. And yes, our future energy system must be one in which we all reduce emissions. There is no going back. But it must also be a future where we ensure energy security and energy accessibility for everyone. This brings me to three key important points,” he noted.
First, the Secretary General stressed that the energy future must not be ideologically driven.
“This is not the world in which, as some would have us believe, renewable energy and electric vehicles can overnight replace oil and gas. This is a world that needs consistency in messaging, not the sudden shifts that we have witnessed in recent years. In this regard, we need to be realistic and pragmatic about what each energy source can actually deliver. And to ensure that all available technologies are utilized to reduce emissions,” said Al Ghais.
Second, it is necessary to address the needs of all people worldwide, as billions of people in many parts of the world still suffer from energy poverty.
“Third, we need investments, investments, and even more investments. For oil alone, we see investment needs amounting to $17.4 trillion. That is nearly $650 billion per year from now until 2050, and it is absolutely essential that these investments in all types of energy and all technologies are made. Because this will help us map out the appropriate future energy pathways for all countries and all peoples of the world,” he emphasized.
Regarding OPEC’s cooperation with Azerbaijan, Al Ghais noted that OPEC looks forward to continuing to work with Azerbaijan, “to help ensure a stable, secure, and sustainable energy future for all—a future that requires concerted efforts to maintain market stability.”
