OPEC Stresses Long-Term Oil Demand, Calls for $18 Trillion Investment

At the Russian Energy Week conference, OPEC and OPEC+ leaders made it clear: oil is here to stay, and the world needs to invest accordingly.

OPEC Secretary General Haitham Al Ghais stated that global energy demand is expected to rise by 23% by 2050, and oil will continue to supply around 30% of the global energy mix. Despite growing interest in renewables, OPEC maintains that oil demand will continue to rise for decades, rejecting the International Energy Agency’s forecast of a near-term peak.

To meet future demand, OPEC states that the oil and gas industry needs to invest $18.2 trillion by 2050, up from last year’s $17.4 trillion estimate.

Reuters also notes that the call for investment comes amid ongoing debate within OPEC+ about production plans. Saudi Arabia and Russia (the plus in OPEC+), the group’s leading producers, have disagreed over the pace of output but confirmed their dedication to working together. Russian Deputy Prime Minister Alexander Novak described OPEC+ as “essential” for both the Russian and global economies.