OPEC Stresses the Importance of Increasing Oil Investments

OPEC Secretary-General Haitham al-Ghais (Asharq Al-Awsat)
OPEC Secretary-General Haitham al-Ghais (Asharq Al-Awsat)
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OPEC Stresses the Importance of Increasing Oil Investments

OPEC Secretary-General Haitham al-Ghais (Asharq Al-Awsat)
OPEC Secretary-General Haitham al-Ghais (Asharq Al-Awsat)

OPEC Secretary-General Haitham al-Ghais stressed the importance of increasing investments in the oil sector to avoid any future volatility in the oil markets.

Ghais said that among the main challenges are the energy transition and the future of energy in general, adding that OPEC has adopted a policy that aims at embracing all forms of energy.

He added that OPEC's research studies have shown that oil will account for 29 percent of the global energy mix in 2045, highlighting another challenge related to investing in the oil sector, as the world requires nearly $12 trillion in investments in this sector alone.

The official explained that last year's challenges included the oil market's volatility and demand-supply unbalance, which led to a significant decline in investments.

Oil investments totaled some $500 million per year but decreased with the drop in prices in 2016, leading to a decrease in production capacity and investments after the COVID-19 pandemic, WAM quoted Ghais.

On OPEC's long-term demand-supply predictions, Ghais said that the organization has issued its 16th annual report during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2022 in the UAE and noted that the organization believes that dependence on oil will continue even though previous predictions claim otherwise.

He highlighted the fact that oil demand in 2045 will reach 110 million barrels per day, compared to 99 million barrels at present, adding that OPEC's expectations also indicate that with population growth increasing by one billion and 900 million people, the demand for oil and energy will increase to fuel global economic growth.

It could witness a growth in its annual gross product of between 2.5 percent and 3 percent, reflecting demand levels.

He pointed out that OPEC's expectations also indicate an increase in energy demand by about 23 percent, from 300 million barrels equivalent to 350 million barrels in 2045. Meanwhile, oil demand levels will remain stable, and natural gas and renewable energy are expected to rise within the overall energy mix in the future while the share of coal will decrease.

On boosting investments in the oil sector, Ghais highlighted that investment delays are attributed to the sharp volatility in oil prices, adding that the role of OPEC and OPEC Plus consists of maintaining market stability.

The Sec-Gen stressed the importance of increasing investments in the oil sector to avoid any future volatility in the oil markets, and to promote investment in fossil energy.

UAE's policies aimed at ensuring global energy stability underscore its clear vision and critical role in being a safe international source of energy and oil supplies, in line with the main objectives of OPEC, said Ghais.

Since joining the organization, the role of the UAE has remained clear: to increase production, maintain economic growth, achieve diversification through other sources, and reduce costs.



US-Saudi Business Council Hosts High-Level Investment Event

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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US-Saudi Business Council Hosts High-Level Investment Event

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The US-Saudi Business Council, in collaboration with the White House and the US Department of Commerce, hosted a high-level investment event on Friday in Washington.
The event was held in preparation for the upcoming visit of US President Donald Trump to the Kingdom of Saudi Arabia as part of ongoing efforts to strengthen the economic partnership between the two countries, the Saudi Press Agency said Saturday.
The event was attended by senior executives from more than 50 American companies, alongside a high-level Saudi delegation that included officials from over 10 ministries, government agencies, and private-sector companies. The gathering provided a valuable opportunity for dialogue and the exchange of perspectives on the prospects for bilateral cooperation.
Representatives from the US Department of Commerce and the US-Saudi Business Council presented strategic visions and key topics focused on supporting trade and investment relations between both sides.
Participants discussed cooperation opportunities in sectors vital to both economies, including digitalization and artificial intelligence, mining and minerals, innovation in the energy sector, and the development of cross-border trade and investment.
Bilateral meetings between representatives of American companies and the Saudi delegation offered platforms to explore market trends and strengthen direct business relations.
The event reflected the shared commitment of both countries to advance economic cooperation to deeper levels and highlights the pivotal role of the US-Saudi Business Council in building bridges between the public and private sectors in both Saudi Arabia and the United States.