The global oil and gas production and exploration spending fell by around 26 per cent in 2015 and a further 22 per cent in 2016, both worth above $300 billion, the Secretary General of the Petroleum Exporting Countries (OPEC), Mohammed Sanusi Barkindo, has said.
Speaking at the International Petroleum Week, London, yesterday, the OPEC scribe said the situation has impacted new projects and new discoveries too.
In his speech at the event, he said the gravity of the sharp contraction in oil industry investment was underscored, “To put it simply: the industry cannot afford to see investment levels fall for a third year in a row.”
He said stability today is also vital for stability in the future, given that the oil industry is very much a medium- to long-term business.
“Moreover, the industry remains a growth business. We see the world requiring more oil in the years ahead. Oil will remain a fuel of choice for the foreseeable future,” he said.
In OPEC’s latest World Oil Outlook, oil is still expected to supply over 26 per cent of the world’s energy demand by 2040. Oil demand increased by around 17 mb/d between 2015 and by 2040 to reach close to 110 mb/d.
“This will require significant investments. And new barrels are needed to not only increase production, but also to accommodate for decline rates from existing fields. Overall, we see oil-related investment requirements of around $10 trillion over the period to 2040,” he said adding that in this regard, “we should not forget that today 2.7 billion people still rely on biomass for their basic needs, and 1.3 billion have no access to electricity.
If you are happy to be contacted by a Daily Trust journalist please leave a telephone
number that we can contact you on. In some cases a selection of your comments will
be published, displaying your name as you provide it and location, unless you state
otherwise. Your contact details will never be published. When sending us pictures,
video or eyewitness accounts at no time should you endanger yourself or others,
take any unnecessary risks or infringe any laws. Please ensure you have read the
terms and conditions.