In a rapidly evolving world, where energy plays a crucial role, the Organization of Petroleum Exporting Countries (OPEC) has sounded an alarm that cannot be ignored. During a highly resonant conference held in Abu Dhabi, OPEC highlighted a growing concern: investment in the oil sector is decreasing, and this could have significant repercussions on the global economy.
Haitham Al Ghais, a prominent representative of OPEC, emphasized that, to maintain a balance in the energy market and prevent a price surge, an investment of at least 12 trillion dollars will be needed in the oil sector by 2045. He described this lack of investment as a “time bomb”, highlighting how price volatility could increase exponentially as demand rises.
Brent, which represents a benchmark for the global oil market, recorded an increase of 29% since last June, reaching almost 97 dollars per barrel, a peak never seen since last year. This upward trend is largely due to the decisions of some countries, such as Saudi Arabia and Russia, to reduce their production.
When asked if the price of oil could reach 100 dollars per barrel, Al Ghais responded cautiously, emphasizing that, although OPEC does not venture into price forecasts, there are several factors that could push in that direction, particularly the lack of investment in the sector.
OPEC emphasizes the importance of investments
Reflecting on the situation, Al Ghais reiterated the importance of a solid financial commitment, emphasizing that “not investing adequately means putting the planet’s energy security at risk”. He then added that, given demographic growth and economic expansion, it would be illusory to think of meeting future energy needs only with renewable energies or the use of hydrogen.
These reflections come at a particular time, shortly after the International Energy Agency (IEA) predicted that global demand for oil, natural gas, and coal will reach its peak by 2030. The IEA also urged an immediate halt to investments in new oil and gas projects to have a chance to reduce greenhouse gas emissions by 2050.
However, Al Ghais highlighted that achieving the proposed reduction goal would represent an “epic challenge”. He pointed out that, despite the growing popularity of renewable energies, dependence on fossil fuels has remained almost unchanged over the past thirty years.
In conclusion, as the world moves towards a greener future, OPEC reminds us that we cannot neglect the importance of ensuring a stable energy supply at affordable prices. It will be essential to find a middle ground between the need to protect our planet and ensuring energy security. The road ahead is still long, but with the right vision and determination, we can hope for a balanced and sustainable energy future.