Members of the Organization of the Petroleum Exporting Countries (OPEC) are said to require investments of about $10.5trillion to meet the projected increase in global oil demand.
This is as Nigeria’s crude oil production increased by 151,100 barrels per day (bpd) from 1.6 million bpd in October to 1.751 million bpd in November, according to latest data from OPEC.
The Secretary General of OPEC, Mohammad Sanusi Barkindo, who made this disclosure at the 5th International Energy Executive Forum, in Beijing, China, added that it is important to encourage the kind of investments necessary to prevent supply gaps in the future.
The fact remains that the world will continue to need all energy sources, especially for the 1.1 billion people in developing countries that suffer from acute energy poverty.
Barkindo said the positive benefits of oil should not be put beyond the reach of millions of the world’s poorest and most vulnerable people. “It should not be overlooked that our resource has, throughout its history, stimulated economic growth, development, prosperity and social mobility.
“The right to have access to modern energy services for the first time, to provide warmth, light and mobility should not be unduly impeded.
“Therefore, rather than discriminate against any energy source, it is vital that we collectively develop and adopt technologies that transform the environmental credentials of all energies. In this regard, OPEC welcomes coordinated action among all Parties, with industry and through various research and development platforms,” he added.
Barkindo insisted that the market rebalancing process is well underway, adding that commercial oil stocks in the Organisation for Economic Co-operation and Development (OECD), fell further in November, and the difference to the latest five-year average was reduced by around 200 million barrels since the beginning of this year.
This process, he noted, was clearly driven by the excellent conformity levels with the production adjustments, which was 116 per cent in October. It is a clear indication of the steely and determined commitment of participating producers to this process.
He added that there are further positive signs for the global oil market. “Global economic growth is forecast at 3.7 per cent for both 2017 and 2018. China’s GDP growth is forecast at 6.8 per cent in 2017, and 6.5 per cent in 2018. Correspondingly, global oil demand growth has also been on the rise. For 2018, the encouraging dynamic is set to continue with a forecast of 1.51 million barrels a day.”
Meanwhile, OPEC’s monthly oil market report released recently, showed that total OPEC-14 crude oil production averaged 32.45 mbpd in November, a decrease of 133,000 bpd over the previous month. Crude oil output increased mainly in Nigeria, while production mainly declined in Angola, Saudi Arabia, Venezuela, and the United Arab Emirates (UAE).
Although there is a slight decrease in OPEC oil production, Nigeria managed to record an improvement of 151,100 bpd during the month under review.
The new OPEC report showed that Nigeria’s crude oil production has witnessed consistent increase since the beginning of this year, increasing from 1.388 million bpd in first quarter (Q1) to 1,483 million bpd in Q2 and 1.592 million bpd in Q3.
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, emphasised the need for stakeholders to proffer solutions to vandalism challenge, as it posed a great threat to the Nigerian economy in terms of revenue loss and environmental degradation.
