OPEC: Oil industry must innovate and become more productive, but at a cost of $ 12.6 trillion

According to Sanusi Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC), the global petroleum industry will need around $ 12.6 trillion in investment to maintain its efficiency in innovation and production over the next 25 years.

Investing in innovation will be necessary for the sector to play a leading role in meeting global energy needs, which are changing rapidly. The official made the statement on November 25, during the video conference of the “Crescent Ideas” forum on the world’s energy outlook.

 “Looking ahead, our projections for the oil industry show that investments of around $ 12.6 trillion will be needed upstream, midway and downstream by 2045. To achieve this, it It is very important that policy discussions on energy and investments remain inclusive and support a diverse portfolio of energy options, ”he said. And to add that now with its back to the wall, the industry cannot move forward without adequate capital to maintain its historic leadership.

With the development of clean energy, it is estimated that the growth in oil demand is expected to decline by 70% over the next 30 years, hence the urgency for the oil industry to adapt to the changes that are required.

While the leader insists on the urgency of reform, he is not very optimistic about the resilience of the refining segment to weather this crisis. According to him, expect a wave of refinery closures around the world in the coming years. This, as new energetic capacities are developed. He believes that refining will be the segment that will be hit hardest by the first structural changes.

However, Barkindo recalled that OPEC’s World Oil Outlook showed that upstream capital spending could fall by more than 30% in 2020 alone, but maintained that crude oil will continue to be a staple in the market. global energy mix, over the next 25 years.

Source Ecofin Agency