The global oil and gas industry requires an estimated $10.5 trillion to meet future world oil demand that is expected to surpass 111 million barrels per day by 2040, Mohammed Barkindo, secretary-general of Organisation of Petroleum Exporting Countries (OPEC) has said.
At the ongoing Africa oil and power conference in Cape Town, he said, “Indeed, the world will attain the 100 million barrels per day level of consumption in the fourth quarter of 2018, much sooner than projected. This represents a staggering increase of 16 million barrels per day.
“Therefore, stabilizing forces which create conditions conducive to attracting investment are essential.”
OPEC and other producers led by Russia last year started supply cuts, and withheld 1.8 million barrels per day (bpd) of crude to tighten the oil market and prop up prices that in 2016 fell to their lowest in more than a decade.
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However, Russia and OPEC leader Saudi Arabia have spoken about the need for a gradual increase in oil production as the goal of removing excessive oil stockpiles has now been achieved and the market has been broadly balanced.
Barkindo also assured that oil industry confidence was beginning to return and that OPEC was exploring ways of further institutionalizing a declaration of cooperation on oil output between OPEC and non-OPEC oil producers.
“Going forward, the priority is on ensuring stability is sustainable, spreading confidence in the industry and encouraging an environment conducive to the return of investments,” he added.