OPEC President warns of a “dangerous” lack of investment in oil that threatens to raise oil prices

London
CNN
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The head of the Organization of the Petroleum Exporting Countries — a group of the world’s largest oil producers — told CNN on Monday that a lack of investment in the oil industry poses a risk to global energy security and could push crude oil prices to $100 a barrel.

Haitham Al-Ghais, Secretary-General of OPEC, said that a total investment of at least $12 trillion is needed globally in the oil industry between now and 2045 to prevent energy prices from rising. CNN’s Becky Anderson In Adipic Energy conference in Abu Dhabi.

He warned that the lack of investment in the oil sector is “dangerous.”

He added: “By underinvesting, we are actually putting energy security at risk…and without it [investment]“I think there are serious possibilities that prices and volatility will rise as demand grows.”

The price of Brent crude, the global benchmark, has risen 29% since its low in mid-June and last week traded near $97 a barrel – its highest level since last November – mainly on the back of an extension of the crisis period. Production cuts By Saudi Arabia and Russia.

In response to a question about whether the price of oil would reach $100 per barrel, as some analysts suggested, Al-Ghais said that OPEC did not expect prices but that “the factors that may lead to this number… have been present for some time and still exist – most notably the lack of investments.” What we saw in oil.

“I think it’s very important that the world gets this right,” he added. “By underinvesting, we are putting energy security at risk – the world will need at least $12 trillion in global oil industry investment between now and 2045.”

Al-Ghais said that population and economic growth means that “there is no way on earth” through which the world’s future energy requirements can be met through renewable energy sources alone, or by relying on hydrogen as an energy source.

“We have to make sure the world has enough energy – stable, affordable, reliable and uninterrupted energy sources,” he added.

The comments come just one week after the International Energy Agency predicted that global demand for oil, natural gas and coal is likely to peak by 2030.

The International Energy Agency has called for spending on new oil and gas projects to be halted immediately if the world has a chance of cutting planet-heating emissions to zero by 2050 on a net basis, taking into account all emissions produced and removed from the atmosphere.

Fatih Birol, the agency’s executive director, told reporters last week that despite the massive expansion of renewable energy around the world, limiting global warming is a challenge. 1.5°C Rising above pre-industrial levels – the threshold beyond which extreme weather could have a catastrophic impact – remains a “daunting task”.

Achieving this goal requires a decline in global demand for fossil fuels by 25% by 2030 compared to current levels, according to projections from the International Energy Agency.

Al Ghais said that achieving this reduction target will be a “huge challenge” given that fossil fuel consumption as a share of global energy demand has barely budged in 30 years.