OPEC Secretary-General Mohammed Barkindo urged oil producing companies to increase capabilities and reinforce investment to fulfill the future demand, at a time when there is a shrinkage in surplus energy.
Brent crude last week reached USD 86.74, the highest since 2014.
“We are estimating $11 trillion worth of investments that would be required to meet current and future demand up until 2040,” said Barkindo, on the sidelines of the India Energy Forum by CERAWEEK.
From around 14.5 million bpd in 2017, global oil demand is expected to increase to 111.7 million bpd by 2040, as per OPEC estimates, according to its latest report in September.
“In 2019, there is a possibility of larger imbalance due to growth in supply,” Barkindo said.
He added that India’s oil demand is expected to rise by 5.8 million barrels per day (bpd) by 2040, accounting for around 40% of the global demand rise. He added that India is projected to see the largest additional oil demand, growing at the fastest pace of 3.7 percent a year, by 2040.
The Russian government is no longer capping oil output increases by local producers, one of the country’s top energy companies Gazprom Neft said on Tuesday.
Deputy chief executive Vadim Yakovlev told a briefing in London that the company’s production was back at the levels it was pumping before Russia clinched a deal with OPEC to cut output last year, and was ready to produce more next year.
Gazprom Neft could potentially lift its oil production by a further 20,000 to 30,000 barrels per day (bpd) this year and add another 50,000 bpd next year, Yakovlev said.
“The oil market is well supplied. But there are big uncertainties regarding the end of the year with regards to Iran and Venezuela. We may have an opportunity to grow further,” Yakovlev told reporters.
