- Al Ghais disagreed with calls to stop investments in new oil projects despite the global renewable shift.
- OPEC’s 2023 World Oil Outlook states that the global oil demand will hit 116m barrels a day by 2045.
The Organisation of the Petroleum Exporting Countries (OPEC) is seeking more investment in oil despite the global push for renewable energy sources. OPEC said oil remains indispensable in the renewable energy transition, projecting in its recent 2023 World Oil Outlook that the global oil demand would hit 116 million barrels a day by 2045. The Secretary-General of OPEC, Haitham Al Ghais, had earlier disagreed with calls to stop investments in new oil projects, saying such calls were “misguided and could lead to energy and economic chaos”.
In a series of posts on its X handle, OPEC stated, “The transition to renewable energy will require a lot of steel, concrete and plastic. For example, wind turbine foundations are reinforced with concrete, and the towers and blades are made from steel and plastic. Oil-powered trucks and ships are also used to transport these parts to installation sites. Oil remains indispensable in producing materials essential for smooth energy transitions.” The new energy world order seeks to replace fossil fuels with renewable energy sources like solar, wind, and water.
In the latest World Oil Outlook, Al Ghais noted that while the world needs more energy, there was also the need to continually reduce emissions, subscribing to global best practices and cutting-edge, best-in-class technologies. He suggested carbon capture utilisation and storage, direct air capture, clean hydrogen technologies, the circular carbon economy, and others. According to Al Ghais, the platform for building a sustainable energy future for all also comes from stability in the energy market, which remains the core focus of OPEC and its partners in the Declaration of Cooperation.
He added, “The continued proactive, preemptive and multilateral approach to balanced and stable markets and the voluntary production adjustments have proven beneficial over the past year. It will continue to be a guiding principle in the years to come. Nonetheless, the future requires all industry stakeholders to work together; no one can work alone. Collaboration must be based on the realities we see to ensure a long-term investment-friendly climate for all energies.”