During a Nigerian oil and gas conference, OPEC Secretary General Haitham Al Ghais emphasized that global demand for all types of energy is projected to increase by 23% by 2045. In light of this, Al Ghais urged continued investment in oil, cautioning that failing to do so would result in a drastic spike in prices. While acknowledging the need for technological advancements to address fossil fuel emissions, he deemed calls to halt funding for new oil projects unrealistic and unwise. Al Ghais highlighted the importance of innovative solutions such as carbon capture utilization and storage, hydrogen projects, and the adoption of a circular carbon economy, which has received support from the G20.
To meet this growing demand, the global oil industry would require a staggering $12.1 trillion in investments over the same period, according to Al Ghais. However, he noted that the industry is currently falling short of reaching this investment target. Sources familiar with OPEC's outlook suggest that the organization will maintain an optimistic view on oil demand growth for the coming year when it releases its first outlook in the following weeks. While projecting a slowdown compared to this year, the forecast for 2024 is expected to demonstrate above-average growth as the world gradually recovers from the COVID-19 pandemic.