The Organisation of Petroleum Exporting Countries (OPEC), has announced that the global oil industry will require about $12.6 trillion investments in the downstream, midstream as well as upstream to sustain its innovative and production efficiency in 25 years.
Secretary General,OPEC who disclosed this at the Crescent Ideas Forum on ‘‘The Outlook on Energy’’ videoconference, also predicted a rash of closure of refineries globally in a few years as regions develop new capacities.
He said OPEC’s World Oil Outlook showed that upstream capital expenditure could fall by more than 30 per cent in 2020 alone, but maintained that crude oil will continue to be relevant in the next two decades and a half.
He argued that the oil industry cannot move forward without adequate capital to sustain its historic leadership, stating that it would need financial firepower to grow out of the coronavirus-induced crisis, to sustain technological development and human resources, and to help provide a stable, economic and secure energy supply.
“For OPEC and its member countries, stable and timely investment is essential if we are to successfully achieve our cherished goals of economic diversification and development, and importantly, to help diversify our own energy mix.
“In fact, OPEC’s World Oil Outlook shows that upstream capital expenditure could fall by more than 30 per cent in 2020, exceeding the annual dramatic declines seen in the industry downturn of 2015 and 2016.
“Looking ahead, our projections for the oil industry show that investment of around $12.6 trillion will be needed in the upstream, midstream and downstream between now and 2045.