The Oil-Producing Exporting Countries (OPEC) yesterday disclosed that a whopping $10.3 trillion investment would be required to meet the 15 million barrels per day (mb/d) projected increase in global oil demand from 94.5 mb/d in 2016 to 111.1 mb/d in 2040.
This was as the Minister of State, Petroleum Resources, Dr. Ibe Kachikwu, revealed that the nation’s crude oil deposit of over 39 billion barrels could sustain the country for over 50 years
by which time a veritable alternative energy source would have been developed. He further said the golden objective was achieving higher production volume at less cost as it is presently.
The two senior industry stakeholders spoke in Abuja at the opening of the 18th Annual Nigeria Oil and Gas Conference yesterday.
In his remarks, the Secretary General of OPEC, Mohammed Sanusi Barkindo, said the $10.3 trillion investment was also necessary to offset the impact of natural decline rates, which could be as high as 5 per cent per year.
He said: “To maintain current production levels, the industry might need to add upwards of 4mb/d each year. This background gives a sense of the gravity of the situation as OPEC and its non-OPEC partners held a series of meetings, which culminated in the Declaration of Cooperation among which entails promoting mutual respect among all nations.
“Bringing together 25 sovereign producing nations is unparalleled in the history of the oil industry. The ‘Declaration of Cooperation’ stra- tegic partnership constitutes a fundamental and essential feature of the ‘new world of energy.’
“A long-absent element of stability has been reintroduced to the market – industry optimism and confidence abounds. It is a transparent and fully accessible platform open to all producers. It has evolved into a broader continuity partnership that can work for everyone across all time frames, to help deliver the sustainable market stability we all desire,” Barkindo stated.
Also speaking at the conference, Kachikwu said the theme, “Driving Nigeria’s Oil and Gas Industry Towards Sustained Development and Growth”, was apt considering the robust investments the Federal Government has made in the sector in its quest to take it to the next level.
He said though there was a widespread belief that the demand for crude oil was greatly reducing due to the production of electric vehicles, he, however, noted that the reverse was the case as many industry experts forecast that oil demand will remain high till the 2050s.
“The oil industry is at a critical stage of its cycle today. The demand is still there. Electric cars are just 2 per cent of mobility today. Oil demands will keep increasing up till 2050s. Oil is still being found and according to Department of Petroleum Resources (DPR), we have 39 billion barrels to last us for over 50 years. What value it brings to the populace is key. We need to produce at much cheaper costs,” he said.