The price of Organisation of Petroleum Countries, OPEC basket of 13 crudes stood at $39.88 a barrel on Tuesday, compared with $39.40 the previous day, according to OPEC Secretariat calculations.
The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria).
The Secretary General of OPEC, HE Abdalla S. El-Badri, that the last two years have been a challenging time for the oil industry.
Â [spacer height=”20px”]
He said that at times it has felt as though the industry has been in constant flux, as investments, projects, margins and jobs have been cut.
El-Badri indicated that the global economy is estimated to more than double in the period to 2040.
â€œSecond, passenger car ownership rates are expected to increase from just over 1 billion today to close to 2.2 billion by 2040.Â The number of commercial vehicles on the road is also anticipated to more than double.Â And we will no doubt see more flights being taken. Third, with billions of people still having no access to electricity and many more still relying on biomass for their basic needs, there is huge potential for socio-economic development in terms of expanding access to modern energy services.
â€œFourth, world population is projected to reach around 9 billion by 2040, an increase of over 1.7 billion from todayâ€™s level. And fifth, there is last yearâ€™s COP 21 agreement here in Paris to counter the threat posed by climate change, which all OPEC Member Countries were part of.Â Let me stress that OPEC welcomes this agreement.
â€œFrom the perspective of what will make up the future energy mix, it is clear that all forms of energy are required.Â However, it is crucial we appreciate just what each energy source can provide in the decades ahead.
Â [spacer height=”20px”]
There is no doubt that renewables, such as solar and wind, will continue to significantly expand their role.Â OPEC Member Countries recognize and support their development.Â Many investments are being made by Member Countries in this sector. Nuclear and hydropower will also maintain their share in the global energy mix in the years ahead. Overall, non-fossil fuel energy is expected to make up around 22 per cent of the global energy mix by 2040.â€