$ 11.8 billion in investments required between 2021 and 2045 in the oil sector – OPEC

Mohammed Barkindo, <a class=OPEC SEC. GEN” width=”800″ height=”533″ class=”size-full wp-image-168620 jetpack-lazy-image” data-lazy-srcset=”https://cdn.thenewsnigeria.com.ng/2020/04/OPEC-SEC-GEN-300×250.jpeg 300w, https://cdn.thenewsnigeria.com.ng/2020/04/OPEC-SEC-GEN-768×512.jpeg 768w, https://cdn.thenewsnigeria.com.ng/2020/04/OPEC-SEC-GEN.jpeg 800w” data-lazy-sizes=”(max-width: 800px) 100vw, 800px” data-lazy-src=”https://cdn.thenewsnigeria.com.ng/2020/04/OPEC-SEC-GEN.jpeg?is-pending-load=1″ srcset=”data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7″/>

Mohammed Barkindo, OPEC SEC. GEN

By Emmanuella Anokam

The Organization of the Petroleum Exporting Countries (OPEC) indicates that investments of $ 11.8 trillion will be needed between 2021 and 2045 in the upstream, middle and downstream oil sectors.

OPEC Secretary General Mohammad Barkindo revealed this in his remarks Wednesday at the 23rd World Petroleum Congress (WPC) in Houston, United States.

Barkindo spoke at a plenary session entitled “Energy transition: scenarios for the future”.

He said OPEC’s World Oil Outlook (WOO) 2021 showed upstream capital spending fell about 30% in 2020 due to the impact of the COVID-19 pandemic.

According to him, this follows declines of 27% in 2015 and 2016.

“Investments have not recovered since a global level of $ 700 billion was recorded in 2014, and they were only halfway there in 2020.

“Return of investments is a central objective of the Declaration of Cooperation between OPEC Producers and Non-OPEC Producers, which has done so much to restore market balance and stability since the beginning of the pandemic in early 2020.

“If the necessary investments are not made, it could have repercussions and leave scars in the long term, especially for security of supply, affecting not only producers but also consumers,” he said. .

According to the secretary general, WOO 2021 also sees global energy demand increase by 28% by 2045, underscoring the need to take a holistic view of the energy sector and appreciate what each source of energy can deliver.

“For oil and gas, some believe that these industries should not be part of the energy future, that they should be thrown into the ‘trash of history’ and that the future can be dominated by energies. renewable and electric vehicles.

“It is important to be clear that science does not tell us, and statistics related to the scourge of fuel poverty do not tell us either.

“Renewable energies are coming of age, with rapid expansion of wind and solar, but – even by 2045 – in our WOO, it is estimated that they only represent around 24% of the global energy mix.

“Combined oil and gas is expected to continue to supply over 50% of global energy needs by 2045, with oil accounting for around 28% and gas just over 24%.

“It is important to stress that many OPEC member countries have significant solar and wind resources and huge investments are being made in this area.

“OPEC welcomes the development of renewable energy, which will be vital in helping to quench the world’s growing thirst for energy.

“When it comes to electric vehicles, there is no doubt that they will continue to experience expansion in the transport sector,” he noted.

He further noted that his WOO showed that the share of electric vehicles in the total road transport vehicle fleet is expected to reach almost 20% by 2045.

However, he said, for much of the world’s population, electric vehicles did not offer a viable alternative to the internal combustion engine, mainly due to their cost.

“There is also a debate about how they view their eco-friendly construction process, especially the batteries needed, mining and metals and supplying electricity to vehicles.

“The key point to underline is that the challenge of tackling emissions has many paths. It is not a single path for everyone, whether it is a country or an industry.

“We are convinced that the oil and gas industries can be part of the solution to fight climate change and drive the energy transition forward,” he said. (NOPE)

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