In the period to 2040, the required global oil sector investment is estimated at $11 trillion.
That’s according to the latest OPEC World Oil Outlook report, which was launched on September 23 in Algiers, Algeria.
The report outlines that total required upstream capital expenditure related to oil amounts to $8.3 trillion. It is projected that downstream capacity additions will require another $1.5 trillion and midstream investments will require another $1 trillion of investment globally, according to the report.
“Given the demand and supply outlook, there is evidently the need for significant investments across the entire industry,” Mohammad Sanusi Barkindo, OPEC secretary general, said in the report’s foreword.
“While investments picked up slightly in 2017 compared to the previous two years, and the expectations are for higher levels again in 2018, it is vital that as an industry we ensure there is timely and adequate investment so as not to lead to a supply shortage in the future,” he added.
Oil is expected to remain the fuel with the largest share in the energy mix throughout the forecast period to 2040, according to the report, which highlighted that there is no expectation for peak oil demand over the period.
The report also outlined that demand for OPEC crude is projected to increase from 32 million barrels per day (MMbpd) in 2018 to around 40MMbpd in 2040 and that long-term oil demand has been revised upward for the second consecutive year, with total demand at over 111.7MMbpd in 2040.
Satisfaction Regarding Current Oil Market Outlook
In addition to launching the 12th edition of its World Oil Outlook report on Sunday, OPEC revealed that the Joint OPEC-non-OPEC Ministerial Monitoring Committee (JMMC) convened in Algiers for its tenth meeting on the same day.
The committee expressed its satisfaction regarding the current oil market outlook and noted the efforts made to achieve an overall conformity adjusted to 100 percent, according to OPEC.
“The JMMC noted that, despite growing uncertainties surrounding market fundamentals, including the economy, demand and supply, the participating producing countries of the DoC [declaration of cooperation] continue to seek a balanced and sustainably stable global oil market, serving the interests of consumers, producers, the industry and the global economy at large,” a statement published on OPEC’s website said.
“The committee also expressed its satisfaction regarding the current oil market outlook, with an overall healthy balance between supply and demand,” the statement continued. source: by Andreas Exarheas|Rigzone Staff