Global Oil Crisis Looms? OPEC Warns No Country Will Escape Without $18 Trillion Investment | World News
New Delhi: The Organization of Petroleum Exporting Countries (OPEC) warned the global community. He says ignoring this could have consequences felt by every nation. OPEC has emphasized that the transition to clean energy requires not only ambition but also policy reforms as well as massive financial investment.
OPEC Secretary-General Haitham Al Ghais called on governments and industry leaders to mobilize $18.2 trillion in investment for oil and gas by 2050, in a forecast published on busenq.com. Without such investment, he warned, the world could face energy shortages despite ambitious clean energy targets.
He emphasized that fossil fuels will continue to dominate a significant share of the global energy mix. Its forecasts show that oil will account for approximately 30 percent of total energy by 2050, while global primary energy demand could increase by 23 percent by mid-century.
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He dismissed forecasts of a decrease in demand as overly optimistic and emphasized that investments are necessary to ensure the smooth functioning of consumers, producers and the global economy. From OPEC’s perspective, declining production from mature oil fields and low investment levels pose a tangible supply risk even in a world that prioritizes renewable energy.
OPEC’s call for major investment contrasts with the International Energy Agency (IAEA), which predicts oil demand will peak earlier due to electrification, efficiency improvements and new energy sources.
Analysts say OPEC’s stance highlights supply risks and warns against underinvestment.
OPEC estimates that $18.2 trillion is needed for oil industry investments. Achieving this is complicated by policy uncertainty, climate regulations and evolving energy markets.
Not every project may be economically or environmentally suitable. Investments need to drive carbon pricing, regulatory changes and increased scrutiny. Expanding production in new areas, deepwater fields or marginal basins presents geological, logistical and permitting challenges.
OPEC says it aims to balance fossil fuel production by oil companies in the Middle East, U.S. shale regions, offshore Africa and the Arctic region with investments in low-carbon technologies. Policy changes and carbon frameworks can encourage or limit hydrocarbon investments.
