Skip to content Skip to Search
Skip navigation

Opec says global oil industry needs $12.1trn investments

Haitham Al Ghais said that the chronic underinvestment needs to be rectified

The global oil industry will need investments worth $12.1 trillion between now and 2045 as energy demand grows, according to Opec secretary General Haitham Al Ghais.

“This equates to more than $500 billion each year,” he said, adding the oil industry alone will make up almost 29 percent of the world’s energy needs by 2045.

However, recent annual investments have significantly missed the target due to industry downturns, the Covid-19 pandemic and the increasing focus on environmental, social and governance issues.

“In our World Oil Outlook 2022, we forecast global energy demand to expand by 23 percent to 2045,” Al Ghais stated. “Meeting this growth, ensuring energy security and affordable access and lowering global emissions in line with the Paris Agreement requires all energies and unprecedented investment and collaboration.”

The Opec chief said that the “chronic underinvestment needs to be rectified. It is not about waiting for tomorrow; it is about making it happen today”.

He stated that Opec member countries are ready, willing and able to play a key role in helping provide energy to the world and reducing emissions.

“We are investing in upstream and downstream capacity. We are mobilising cleaner technologies and our vast pool of human expertise to help decarbonise the industry. We are making major investments in renewables and hydrogen capacity, carbon capture utilisation and storage and other technologies, as well as promoting the circular carbon economy to improve overall environmental performance.”

The overall focus needs to be on emissions reduction and the use of all fuels worldwide, Al Ghais said, indicating “there is no one-size-fits-all solution to a sustainable energy future”. 

Emphasising the importance of ensuring a multilateral approach, he said that Opec “fully supports a global, multilateral approach, with collaboration at the fore”.

“We look forward to this year’s Cop28 in the UAE – an Opec member – and its championing an inclusive agenda, with the event undertaking a first global stocktake since the Paris Agreement.

“We hope the future sees investments and finance in the energy transition focusing on an ‘all peoples, all fuels and all technologies’ approach,” he said.

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]