‎“OPEC” Secretary General: Lack of investment in oil and gas ‎sector may cause fluctuations in the markets

Haitham Al-Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said today, Monday, that the lack of investment in the oil and gas sector could cause fluctuations in the markets in the long term and threaten growth.

According to Reuters, he added that the world needs to focus on reducing greenhouse gas emissions instead of replacing one form of energy with another, stressing that there is a need for major investments in all energy sectors.

“This is the truth that must be spoken,” he said at a conference in Dubai

OPEC estimates indicate that the world needs investments worth $12.1 trillion to meet the growing demand for oil in the long term.

Fereydoun Fisharki, Chairman of the Board of Directors of FGE Energy Consulting, said at the same conference that the world may face a supply problem with global oil demand growing by about eight million barrels per day, as Western sanctions on Russian oil curtail production growth. ,

He added that Russia can maintain production at about 10 to 11 million barrels per day, but it may not be able to increase it to two million barrels per day as was planned in the coming period due to Western sanctions.

The Russian oil and gas sector is subject to a package of Western sanctions aimed at restricting sales to the West and putting a ceiling on Russian oil prices.

Fisherky believes that OPEC is behaving in a completely different way than it used to, as the growth of shale oil in the United States is no longer a source of concern with the rise in prices.

Instead, OPEC shifted its focus to generating revenue from oil resources before peak demand reached

Fisherky said that he sees “a desire to keep oil prices above $80 a barrel and a willingness to exceed the $100 limit in the event of scarce supplies.”

OPEC and its allies led by Russia, in what is known as the OPEC + alliance, agreed to cut production in late 2022 to support the market in light of the poor economic outlook.

Then, in a surprising move in April, Saudi Arabia and other countries in OPEC + announced further cuts in oil production by about 1.2 million barrels per day.

OPEC+ members are scheduled to meet in Vienna on June 4 to decide on the next step.