By Udeme Akpan

THE Organisation of Petroleum Exporting Countries, OPEC, has urged oil producing nations to invest $14 trillion in order to meet rising demand for crude oil between 2022 and 2045.

In its latest 2023 World Oil Outlook 2045, obtained by Energy Vanguard, OPEC, stated: “Investment requirements for the overall oil sector, between 2022 and 2045, are estimated at a cumulative $14 trillion (in 2023 $), or around $610 billion per annum on average. Of this, $11.1 trillion is expected to be required in the upstream sector, or an average of $480 billion p.a.

“Downstream and midstream requirements are estimated at $1.7 and $1.2 trillion, respectively. If these investments do not materialize, it represents a considerable challenge and risk to market stability and energy security.”

According to OPEC, “Global oil demand is set to reach a level of 110.2 million barrels a day (mb/d) in 2028, representing an increase of 10.6 mb/d compared to 2022. Non-OECD oil demand is expected to increase by a robust 10.1 million barrels daily, mb/d, reaching a level of 63.7 mb/d by 2028. The Organisation for Economic Co-operation and Development, OECD demand will also increase by 0.5 mb/d over the medium term.

“In the long-term, global oil demand is expected to increase by more than 16 mb/d between 2022 and 2045, rising from 99.6 mb/d in 2022 to 116 mb/d in 2045. Non-OECD oil demand is expected to increase by almost 26 mb/d between 2022 and 2045. In contrast, OECD oil demand is set to contract by around 9.3 mb/d.”

In his foreword to the report, the Secretary General of OPEC, Haitham Al Ghais, said: “Over the past year, we have witnessed a significant shift in the narrative related to energy transitions and the intertwined issues of energy security, energy availability and the need to reduce emissions. Governments and political parties are reevaluating their sustainable energy pathways, taking into account the realities on the ground and the views of populations.There has been pushback against the opinion that the world should see the back of fossil fuels, as policies and targets for other energies falter due to costs and a more nuanced understanding of the scale of the energy challenges. Moreover, we are now seeing more focus on the capacities and national circumstances of all countries in the energy transition agenda, not just a select few.