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The Organisation of the Petroleum Exporting Countries (OPEC) has said that more than a $1 trillion of frozen capex or cuts were recorded in 2015 and 2016.
Speaking on Monday at the 5th Kuwait Oil & Gas Show, OPEC Secretary General, Mohammad Sanusi Barkindo, said that the oil and gas sector would require an investment of $10 trillion by 2040 to meet the growing global energy need.
He said the oil and gas sector is expected to provide more than half of the world’s energy needs by 2040, with their combined share relatively stable between 52 to 53 per cent over the almost 25-year forecast period.
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“In terms of oil, we expect it to reach over 111 (mbpd) by 2040, an increase of around 15 million barrels per day (mbpd). We are expected to hit 100 mbpd during the course of this year, much earlier than initially forecast. On top of this, we should also remember that oil producers and companies must invest heavily simply to offset the impact of natural decline rates, which is annually around four mbpd”, he added.
He disclosed that around three billion people do not have clean fuels for cooking, and 1.1 billion have no access to electricity.
Barkindo added that “when we start up our cars, switch on a light, turn on our mobile phones, we need to recognize that these everyday things are still unknown to billions of people across the world who continue to suffer from energy poverty. It is a universal obligation to address this major challenge”, he added.
