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Barkindo: $10.5 trillion to be required to meet global oil demand

February 20, 2018/ 12:06

Moscow. Investments worth an estimated $10.5 trillion will be required to meet the projected increase in global oil demand by 2040, said Mohammad Sanusi Barkindo, OPEC Secretary General.

He made the remarks at the Nigeria International Petroleum Summit, said a message from OPEC.

“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,” said Barkindo.

He pointed out that oil is expected to remain the fuel with the largest share in the energy mix throughout the forecast period, told Trend.

“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 percent,” said OPEC secretary general.

Primary global energy demand is expected to increase by 35 percent in the reported period, he said, adding that correspondingly, long-term oil demand is expected to increase by 15 million barrels per day (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,” said Barkindo.

OPEC and several other non-OPEC producers have reached an agreement to extend the production deal for a further nine months. This would shift the expiration date of the agreement from March to the end of 2018. The agreement is on the same terms as those agreed in November 2016.

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