Global Oil Sector Require $11.8 Trillion Investment as Energy Demand to Increase to 60 Percent by 2045

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The Organization of the Petroleum Exporting Countries (OPEC) has said the global oil and gas sector requires over $11.8 trillion investment and energy demand to increase to 60 percent by 2045.

OPEC’s Secretary General, H.E Mohammad Barkindo disclosed this at the 2022 NOG Conference and Exhibition in Abuja with the theme “Funding the Nigerian Energy Mix for Sustainable Economic Growth.”

Speaking on this development, Barkindo said regular investment was needed in view of global oil sector requirement of oil cumulative investments of $11.8 trillion U.S. dollars in the upstream, midstream and downstream through to 2045 to meet energy expectations.

According to him, the world will continue to consume oil and gas for the foreseeable future due to the rising population and economic growth, noting that global population will rise to about 20 percent from now to 2045 with about 9.4 billion people as projected, while the rate of the global economy doubles by 2045 which have been projected to about 125 trillion US dollars.

In his words, “Oil is expected to retain the largest share of the energy mix, accounting for just over a 28 per cent share in 2045, followed by gas at around 24 per cent.

“The world will continue to demand for oil and gas. It is ill-advised for anyone to suggest that to achieve our climate target of global temperature rises at 1.5 degree sensuous agreed in Paris that oil and gas should be discontinued. This is unscientific and unsupported by fact.

“All conventional and non-conventional energy sources will be required for the foreseeable future.”

“Oil and gas together would continue to supply more than half of the world’s energy needs for many decades.

“These hydrocarbons are especially vital to the energy mix in regions like Africa, which will see massive population shifts and economic growth in the coming years.

However, he advised global energy Leaders and industry stakeholders to adopt new technologies, including policies to address carbon emissions rather than moving from one energy source to another.

“Regular investment is essential if we are to develop new technologies, strengthen our human capacity and remain leaders in innovation,” he added.