OPEC projects $10tr industry investments by 2040
OIL production related investments are expected to approach $10 trillion between 2014 and 2040, according to the Organisation of Petroleum Exporting Countries (OPEC).
Secretary General, OPEC, Abdalla Salem El-Badri, who made this disclosure in his analysis on climate change, said that the investment underlines the fact that security of supply and security of demand cannot be decoupled, and that a comprehensive look at energy security is needed over the short-, medium- and long-term timeframes.
He added that OPEC also recognises the importance of understanding that energy security means different things to different people, particularly the 1.3 billion people without access to electricity and the 2.7 billion people relying on biomass for their basic needs.
“It is extremely positive that the proposed seventh goal of the United Nations Sustainable Development Goals will call for countries to “ensure access to affordable, reliable, sustainable and modern energy for all”.
Sustainable development goals are a high priority for OPEC members. Sustainable development is the main aim of the financial and technical assistance they provide to other developing countries, whether directly through their own aid institutions or through their participation in the OPEC Fund for International Development (OFID). OFID supports the UN’s Sustainable Energy for All (SE4All) initiative, as well as many projects aimed at alleviating energy poverty, addressing it holistically alongside food and water security”, he said.
According to him, there are also several other challenges and uncertainties that feed into the issue of future energy security, which he said include the ongoing UN climate change negotiations and the importance of reaching an agreement that is comprehensive, balanced, fair and equitable for all, and also the role and impact of financial market speculation on the oil market, human resource requirements and potential staffing shortages, as well as the need to continually improve data transparency.
To help meet these and other challenges, he hinted that OPEC believes it is important to constantly explore ways to develop and expand its dialogue and cooperation with other stakeholders.
He added: “A prime example of this is OPEC’s proactive participation in the International Energy Forum (IEF), which plays an important role in strengthening energy cooperation and dialogue between producers and consumers. OPEC’s involvement includes being a partner organisation in the Joint Organisations Data Initiative (JODI), which focuses on enhancing the transparency, quality, timeliness and flows of oil and gas market data.
“In addition, OPEC regularly participates in other dialogue processes, such as those with the IEF and the International Energy Agency. OPEC has been closely involved in several of the G20’s energy-related work streams, and plays an active role in the European Union-OPEC Energy Dialogue and the Russia-OPEC Energy Dialogue.
“Such dialogue and cooperation are essential elements in the ongoing efforts to maintain stability and confidence in the industry and help everyone meet their energy security needs. The world may have changed a great deal since OPEC was formed back in 1960, but the goal of everyone to achieve energy security remains, whether they are an individual, business, country or region”.
He stated that OPEC members continue to play a positive role in this regard, as they have done since the organisation was formed back in 1960: through holding regular and stable supplies of oil, maintaining an adequate level of spare capacity, supporting efforts to alleviate energy poverty, and engaging and cooperating with other industry stakeholders.
No comments yet