New Delhi: The Organisation of the Petroleum Exporting Countries (OPEC) has warned the global community. Ignoring it, it says, could have consequences felt by every nation. The OPEC stressed that transitioning to clean energy requires not just ambition but enormous financial investment along with policy reforms.
OPEC Secretary-General Haitham Al Ghais, in a forecast reported on busenq.com, called on governments and industry leaders to mobilise $18.2 trillion in investment for oil and gas by 2050. He warned that without such investment, the world could face energy shortages despite ambitious clean energy goals.
He highlighted that fossil fuels will continue to dominate a significant share of the global energy mix. His projections suggest oil will account for roughly 30 percent of total energy by 2050, while global primary energy demand could rise by 23 percent by mid-century.
He dismissed predictions of declining demand as overly optimistic, emphasising that investments are essential to ensure smooth functioning for consumers, producers and the global economy. From OPEC’s perspective, reduced output from mature oil fields and low investment levels create a tangible supply risk, even in a world prioritising renewable energy.
OPEC’s call for major investments contrasts with the International Energy Agency (IAEA), which predicts peak oil demand may arrive sooner due to electrification, efficiency improvements and new energy sources.
Analysts say OPEC’s stance highlights supply risks and warns against underinvestment.
OPEC estimates that $18.2 trillion is needed for petroleum industry investments. Achieving this is complex amid policy uncertainty, climate regulations and evolving energy markets.
Not every project will be economically or environmentally viable. Investments must navigate carbon pricing, regulatory shifts and growing scrutiny. Expanding production in new areas, deepwater sites or marginal basins carries geological, logistical and permitting challenges.
OPEC says that oil companies in the Middle East, U.S. shale regions, offshore Africa and the Arctic margin aim to balance fossil fuel production with investments in low-carbon technologies. Policy changes and carbon frameworks can either encourage or limit hydrocarbon investments.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
