OPEC: Global oil sector requires $640 billion annual investment to meet demand growth

Haitham Al Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said that the total cumulative investment requirements in the oil sector are estimated between 2024 and 2050 at about $17.4 trillion, at a rate of $640 billion annually.

He added, coinciding with the launch of the World Government Summit 2025 in Dubai, that the exploration and production sectors will consume the largest portion of investment in the oil sector, as the total investment needs in this sector are estimated at about $14.2 trillion, and about $525 billion annually.

According to the Emirates News Agency (WAM), he indicated that investment needs in the manufacturing and refining industry and the transportation and storage sector are expected to reach about $1.9 trillion and $1.3 trillion, respectively, during the same period.

The Secretary-General explained that based on OPEC’s expectations in its annual report “World Oil Outlook 2024 WOO”, global oil demand will reach a level exceeding 120 million barrels per day in 2050, an increase of 18 million barrels per day compared to 2023.

He explained that due to population expansion, urbanization and economic growth, developing countries are expected to witness a growth in oil demand of around 28 million barrels per day, unlike developed countries, which will witness a decline in demand of around 10 million barrels per day.

He pointed out that the expectations for global oil demand growth for 2025 remain at 1.4 million barrels per day, as demand in OECD member countries is expected to grow by around 0.1 million barrels per day, while demand in non-OECD countries will grow by around 1.3 million barrels per day.

Al-Ghais said that the decisions of OPEC and OPEC+ have contributed since 2016 to supporting global oil markets and providing energy, noting that the ninth OPEC World Symposium, which will be held in the Austrian capital, Vienna, during the period from 9-10 July, is evidence of the efforts of OPEC and its member states to build bridges of communication in order to achieve stability in the global oil market.