Investment needs in the oil sector will remain substantial to reliably meet the anticipated growth in oil demand according to OPEC’s Secretary-General Haitham Al Ghais.
Al Ghais noted that cumulative investment requirements are estimated at $17.4 trillion between 2024 and 2050, equating to approximately $640 billion annually.
In remarks to the Emirates News Agency (WAM) during the World Governments Summit (WGS) 2025, Al Ghais emphasized that the exploration and production sectors will absorb the largest share of investments in the oil sector. Total investment needs in these areas are projected to reach $14.2 trillion, or around $525 billion annually.
Moreover, investment needs in refining, manufacturing, transportation, and storage are anticipated to reach approximately $1.9 trillion and $1.3 trillion, respectively, over the same period.
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OPEC’s priorities include market stability and reliable supplies
He explained that OPEC’s priorities include supporting and ensuring global oil market stability to secure reliable, cost-effective, and regular petroleum supplies for consumers, a steady income for producers, and a fair return on capital for investors in the petroleum industry.
The Secretary-General emphasized OPEC’s commitment to securing the future of energy across all types and sources in order to address energy poverty and promote prosperity for inclusive economic growth under the “all-peoples, all-fuels and all-technologies” approach.
Al Ghais noted that these objectives are crucial for the development of many economies, particularly in developing nations that are significant drivers of oil demand. To achieve these goals, encouraging investment in all types of energy, including the oil industry, is essential.
Global oil demand forecast to exceed 120 million barrels per day
According to OPEC’s World Oil Outlook (WOO) 2024, global oil demand is expected to surpass 120.1 million barrels per day by the end of 2050, marking an increase of 18 million barrels per day from 2023.
Due to factors such as population growth, urbanization, and economic expansion, developing countries are anticipated to see oil demand growth of about 28 million barrels per day, while developed countries will likely experience a decline in demand by about 10 million barrels per day.
Al Ghais pointed out that the global oil demand growth forecast for 2025 remains at 1.4 million barrels per day. Demand in OECD member countries is expected to grow by 0.1 million barrels per day, while non-OECD countries are projected to see a growth of 1.3 million barrels per day.
Importance of dialogue for market stability
Regarding OPEC’s role in maintaining global oil market stability, Al Ghais stated that the organization has long recognized the importance of dialogue between producers and consumers across all areas of energy.
He added that key international issues related to energy, such as market stability, supply and demand security, economic prospects, and environmental concerns, directly impact the balance of global energy markets, particularly within the oil and gas industry. Proactive dialogue is essential to align the perspectives of all stakeholders.
