Haitham Al Ghais, the Secretary General of OPEC, has said he expects the global demand for crude oil to remain “resilient” this year.
This comes with a predication that it will grow by some 2.4 million barrels per day (bpd) in future. The projection of continued demand coincides with voluntary production cuts by Russia and Saudi Arabia, although US shale producers like Chevron and ExxonMobil, the makers of Texaco and Mobil lubricant products, have reported good production rates.
Nevertheless, with demand expected to outstrip supply by the end of the year, prices have risen close to $100 per barrel.
Speaking to the BBC ahead of the International Petroleum Exhibition and Conference, where key players in the oil industry will meet in Abu Dhabi, the OPEC boss also voiced his concerns about not investing enough in new production capacity to meet the growing demand. He said that ceasing investment in oil production, as some have called for, would be dangerous, adding:
“It will lead to volatility in the future, possible supply shortages. And therefore we at OPEC have always advocated for the importance of continuing to invest in the oil industry as we also invest in decarbonising the industry and move on to adding other forms of alternative energy such as renewables.”
He said that the demand for all forms of energy would grow by 25% by 2045 compared to the current level. He estimated that for the oil industry to contribute its share to this demand, it would need to invest some $14 trillion in new capacity over the same period.