The head of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, warned that a lack of investment in the oil industry could lead to a spike in energy prices and crude oil reaching $100 a barrel. Speaking at the ADIPEC energy conference in Abu Dhabi, Al Ghais emphasized the need for a global investment of at least $12 trillion in the oil industry by 2045 to prevent this scenario. He highlighted the danger of underinvestment in the oil sector and its impact on energy security, stating that without sufficient investment, there is a high possibility of increased price volatility as demand grows.
Al Ghais stressed the critical importance of getting the investment in the oil industry right, as renewable energy sources and hydrogen alone cannot satisfy the world’s future energy requirements given population and economic growth. He emphasized the need for stable, affordable, and reliable sources of energy to meet global demand. These statements come shortly after the International Energy Agency (IEA) predicted that global demand for oil, natural gas, and coal is likely to peak by 2030 and called for an immediate halt in spending on new oil and gas projects to achieve net-zero emissions by 2050.
Achieving the reduction target for fossil fuel consumption as projected by the IEA would be a monumental challenge, as global energy demand still heavily relies on fossil fuels. Al Ghais’s remarks highlight the urgent need for increased investment in the oil industry to ensure energy security and stabilize energy prices.