According to Haitham Al Ghais, the secretary general of the Organization of the Petroleum Exporting Countries (OPEC), a total investment of at least $12 trillion is needed in the oil industry between now and 2045 to prevent a spike in energy prices. Al Ghais warned that underinvestment in the oil sector is “dangerous” and said that without this investment, there is a serious possibility that prices and volatility will increase as demand grows. He emphasized the need for stable, affordable, and reliable sources of energy to meet the world’s future energy requirements.
Al Ghais also stated that population and economic growth mean that renewables alone or relying on hydrogen as an energy source will not be sufficient to meet these energy demands. However, his comments come at a time when the International Energy Agency (IEA) has called for spending on new oil and gas projects to stop immediately in order to reduce planet-heating emissions. The IEA predicts that global demand for oil, natural gas, and coal is likely to peak by 2030, and achieving the goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels remains a challenging task.
In conclusion, the head of OPEC is urging for a substantial investment of at least $12 trillion in the oil industry by 2045 to avoid a surge in energy prices. He emphasized the importance of ensuring stable and affordable energy sources to meet the growing global energy demand. However, these calls for investment come at a time when there is increasing pressure to reduce emissions and transition away from fossil fuels. The International Energy Agency has called for a halt in spending on new oil and gas projects in order to achieve the goal of limiting global warming. Balancing these competing priorities will be a monumental challenge for the future of the energy industry.
