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OPEC Secretary General: Lack of Oil Investments Threatens Growth

Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Haitham Al-Ghais
Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Haitham Al-Ghais
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OPEC Secretary General: Lack of Oil Investments Threatens Growth

Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Haitham Al-Ghais
Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Haitham Al-Ghais

Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Haitham Al-Ghais warned of the danger of ending investment in the oil and gas sector, stressing that this would constitute a threat to global economic growth.

Al-Ghais was speaking during an exclusive interview with Asharq Al-Awsat, on the eve of the meeting of the Joint Ministerial Monitoring Committee on Wednesday. The panel includes ministers from OPEC and allies led by Russia, known as OPEC+.

In view of the importance of energy to global economic growth and the increasing world population, which is expected to rise by about 1.6 billion people until 2045, it would be dangerous not to maintain investments in the sector, as some are calling for, Al-Ghais said, in reference to the International Energy Agency, which is urging oil companies to stop investing in oil.

He added that under-investing in the sector or asking countries and oil companies to stop financing oil projects under the pretext of preserving the environment “constitutes a threat to global economic growth.”

The OPEC Secretary-General stressed that the world would need more energy of all kinds, noting that the oil-producing countries and OPEC member states were taking another path, by investing in renewable and clean energy and working to reduce emissions in the oil industry.

Al-Ghais’ warnings come amid estimates that the oil industry alone will constitute approximately 29 percent of the world’s energy needs by 2045.

OPEC estimates indicate that the world needs investments worth about $12 trillion to meet the growing demand for oil in the long term.

Al-Ghais expects demand for oil to rise, with an annual increase this year of about 2.4 million barrels per day compared to 2022.

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FAO Official: Gulf States Shielded Themselves from Major Shocks

David Laborde, Director of the Agrifood Economics Division at the UN's Food and Agriculture Organization (FAO)
David Laborde, Director of the Agrifood Economics Division at the UN's Food and Agriculture Organization (FAO)
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FAO Official: Gulf States Shielded Themselves from Major Shocks

David Laborde, Director of the Agrifood Economics Division at the UN's Food and Agriculture Organization (FAO)
David Laborde, Director of the Agrifood Economics Division at the UN's Food and Agriculture Organization (FAO)

David Laborde, Director of the Agrifood Economics Division at the UN's Food and Agriculture Organization (FAO), told Asharq al-Awsat that global hunger increased sharply during the coronavirus pandemic, noting that the GCC countries were able to shield themselves from major shocks affecting food security.
Laborde added that global hunger affected over 152 million people, with no improvement in the past two years.
Today, 733 million people suffer from chronic hunger, and 2.3 billion face food insecurity, according to the UN annual report on “The State of Food Security and Nutrition in the World.”

Laborde explained that the global economic crisis has worsened food insecurity, keeping hunger levels high.
Alongside this, climate shocks and conflicts are major causes of hunger. He also pointed out that food insecurity is closely tied to inequality, and the economic crisis, rising living costs, and high interest rates are deepening existing inequalities both within and between countries.
On whether economic diversification in Gulf Cooperation Council (GCC) countries is boosting food security, Laborde said: “A move towards a more diversified economy and enhancing the ability to rely on various sources of food supplies are key drivers of food security resilience and stability.”
“GCC countries have managed to shield themselves from major shocks, primarily due to their high income levels and ability to cover import costs without difficulty,” he explained.
Regarding the FAO’s outlook on reducing global hunger, Laborde insisted that ending hunger will require a significant increase in funding.
When asked for suggestions on how governments could enhance food security, Laborde said: “Despite global figures remaining stable, improvements are seen in Asia and Latin America, showing that the right policies and conditions can reduce numbers.”
“Hunger is not inevitable. Investing in social safety nets to protect the poor, along with making structural changes to food systems to be more environmentally friendly, resilient, and equitable, is the right path forward,” emphasized Laborde.
The annual State of Food Security and Nutrition in the World report, published on Wednesday, said about 733 million people faced hunger in 2023 – one in 11 people globally and one in five in Africa.
Hunger and food insecurity present critical challenges affecting millions globally.
The annual report, released this year during the G20 Global Alliance for Hunger and Poverty Task Force ministerial meeting in Brazil, warns that the world is significantly lagging in achieving Sustainable Development Goal 2—ending hunger by 2030.
It highlights that global progress has regressed by 15 years, with malnutrition levels comparable to those seen in 2008-2009.
Despite some progress in areas like stunting and exclusive breastfeeding, a troubling number of people still face food insecurity and malnutrition, with global hunger levels rising.