Baghdad: OPEC Secretary General Haitham Al-Ghais has stated that the world will continue to rely on oil for decades, highlighting the necessity for substantial investments in the oil sector.
According to Kuwait News Agency, Al-Ghais addressed the International Baghdad Energy Forum, emphasizing that calls to rapidly abandon crude oil in favor of alternative energy resources are unrealistic.
Al-Ghais warned that a hasty departure from oil could lead to confusion in energy security and cause price fluctuations, resulting in significant economic challenges. He noted that historically, energy progress has been achieved through expansion and integration, rather than the exclusion of existing resources. Despite advancements in renewable energy and electric vehicles, global reliance on oil, gas, and coal remains strong.
OPEC reports indicate that fossil fuels currently account for 80 percent of global energy resources, a figure unchanged since 1960, despite a fivefold increase in global consumption. Al-Ghais projected a 23 percent increase in global energy demand, from 308 million barrels per day to 387 million bpd by 2050. Oil alone is expected to constitute 30 percent of energy resources by mid-century, with oil and gas together making up 50 percent. Demand for oil is predicted to rise to 123 million bpd by 2050.
Al-Ghais also forecasted an increase in OPEC production from 49 million bpd to 64 million bpd by 2050, with Middle Eastern exports comprising half of the global crude oil trade. He concluded by stressing the urgent need for increased investment in the oil industry, which is expected to reach USD 18.2 trillion by 2050.