Despite the call for the use of cleaner energy options, crude oil will remain the primary source of energy in the world.
Dr. Mohammad Barkindo, Secretary General, Organisation of Petroleum Exporting Countries, disclosed in a keynote address in Abuja, Nigeria that: ‘’Oil is expected to remain the fuel with the largest share in the energy mix throughout the forecast period. Oil and gas together are still expected to provide more than half of the world’s energy needs from 2016 to 2040, with their combined share relatively stable between 52–53%.
‘’Primary global energy demand is expected to increase by 35% in the reported period. Correspondingly, long-term oil demand is expected to increase by 15 mb/d, rising from 94.5 mb/d in 2016 to 111.1 mb/d in 2040. The majority of this rising demand will come from developing countries, increasing by almost 24 mb/d, to reach 67 mb/d by 2040.
‘’Significantly, this means there is no expectation for a peak in oil demand over the forecast period to 2040. World consumption is on course to exceed 100mb/d, much earlier than projected.’’
He also predicted that: ‘’It is also important to note that to meet the projected increase in global oil demand, investments worth an estimated $10.5 trillion will be required. This underscores the absolute necessity of a sustainable and stable oil market, conducive to encouraging the type of long-cycle investments necessary to prevent supply gaps in the future.
‘’Oil is an essential building block for economic growth, especially in developing countries. Throughout its history, our resource has stimulated development, prosperity and social mobility. Indeed, oil has played a pivotal role in lifting millions of people out of poverty. Put simply, oil has fueled our civilization.
‘’The Sustainable Development Agenda 2030, adopted at the historic summit of the UN in September 2015, to which our President made an important contribution, has enormous implications for our industry.
‘’Oil’s poverty-eradicating potential should not be unduly shackled. The right to have access to modern energy services for the first time, to provide warmth, light and mobility should not be overly impeded.
‘’OPEC remains fully engaged and supportive of the Paris Agreement. We firmly believe that a global consensus from the multilateral process remains the best and most inclusive way for all nations to collectively counter climate change in a fair and equitable manner. The world will continue to need all energy sources, especially for the 1.1 billion people in developing countries that have no access to electricity and the 2.3 billion deprived of commercial energy.
‘’Therefore, rather than discriminate against any energy source, it is vital that we collectively develop and adopt technologies, as well as all-inclusive energy policies, that transform the environmental credentials of all energies, including the 1.5 trillion barrels of proven reserves which currently exist.’’