Haitham Al Ghais, the Secretary General of OPEC, reiterated, that oil and gas needs more investment, stating that oil will continue to account for almost 30% of the global energy mix by 2050.
As per him, a growing economy, population spurt as well as urbanisation – all lead to one clear signal that the world is going to need much more energy as compared to what it is consuming today. His remarks came at the Russian Energy Week conference in Moscow.
Ghais predicts a 23% growth in the primary energy demand by 2050 and it reiterates the fact that oil and gas needs more investment.
He adds that yes, it is indeed a turbulent world and there is a lot going on; however, that’s a constant. And for them in OPEC, the constant happens to be the ability to keep all that noise away from technical, sound as well as the detailed analysis that they do.
The demand forecasts of the OPEC happen to be at the higher end of industry estimates, as it anticipates a much slower energy transition as compared to the other forecasters, like the International Energy Agency (IEA), which has gone on to predict a peak oil demand in 2029 and a supply glut of almost 4 million barrels per day (bpd) in 2026.
OPEC+, which happens to group OPEC, Russia, and other allies, happens to be adding more crude to the market post member countries deciding to unwind some output cuts faster as opposed to earlier scheduled.
Interestingly, the extra supply is adding to the fears of a glut and, at the same time, weighing on oil prices in 2025.
