The Secretary General of the Organization of Petroleum Exporting Countries (OPEC), Haitham Al Ghaison, has revealed that the global oil sector will require more than $12 trillion in investment until 2045.
Ghaison made this announcement at the 6th Nigeria International Energy Summit in Abuja, where he virtually delivered his message of goodwill.
The disclosure comes amid the recent decision by some countries to limit or stop funding for new oil and gas projects, a decision that has elicited mixed reactions in the oil and gas industry. Ghaison stressed the need for policy makers to take into account the national circumstances of developing countries in all their actions, including such decisions.
He said, We must never forget that climate change and sustainable development are two sides of the same coin. Developing countries must be heard. Africa’s perspective must be heard. The views of the fuel poor must be heard.
He added that even the best-intentioned policies can have unintended consequences, increasing the stakes of the “policy design” phase. If this phase is not robust and well thought out, it can have long-lasting and harmful effects, including potential energy shortages and market volatility, as we have seen in recent years, which hurt both producers and consumers.
Ghaison noted that investments represent one of the greatest unforeseen political risks, particularly impacting developing countries with oil and gas resources. Africa, for example, has 120 billion barrels of proven oil reserves and 18 trillion cubic metres of standard natural gas. He stressed that in order for countries to properly use these resources for the benefit of their people, investment levels must be adequate while taking steps to reduce the oil industry’s carbon footprint.