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OPEC projects $10.6 trillion investment needed for oil sector by 2040

OPEC Secretary General emphasized the need for balanced policies to achieve energy security and climate goalsĀ 
OPEC projects $10.6 trillion investment needed for oil sector by 2040
The annual OPEC report anticipates an increase in oil demand led by Asia, particularly China, by 2040. (Photo Credit: Kuwait News Agency)

Necessary investments in the oil sector until 2040 are projected to reach $10.6 trillion, according to an OPEC report. In the latest annual report, the 2025 World Oil Outlook (WOO), OPEC Secretary General Haitham Al-Ghais stated that the oil sector requires approximately $18.2 trillion in investments through 2050 to ensure market stability and meet the demands of both developing and developed countries, as reported by Kuwait News Agency.

He emphasized the importance of reducing emissions and strengthening efforts towards low-carbon solutions. Al-Ghais asserted that there is an increasing interest in carbon capture and storage as part of a circular economy policy. Achieving energy security and climate objectives necessitates balanced policies that encompass all energy sources and technologies in a spirit of transparency and cooperation. He called for a recognition of the realities within the energy sector.

OPEC investments in oil sector
(Photo Credit: KUNA)

Read more: OPEC reduces 2025 oil demand forecast to 105 million bpd, projects 122.9 million bpd by 2050

Oil’s continued importance amid renewables transition

Al-Ghais indicated that this report will serve as a crucial reference for decision-makers and experts to tackle future challenges and ensure robust global economic performance. The annual report, which provides an outlook on the industry through 2040, forecasts an increase in oil demand primarily driven by non-OECD nations, especially in Asia, with China potentially leading the charge, expecting an average increase of 21.4 million barrels per day (bpd) by 2040. The petrochemical and aviation sectors are anticipated to be the main contributors to this rising demand, contrasting with stable or decreasing usage in industrialized nations.

The WOO also addresses various climate, geopolitical, and technical factors, noting an increase in production from outside OPEC, particularly U.S. shale oil, which is expected to peak in the mid-decade before declining, thus allowing traditional producers to regain market influence. Oil is projected to remain a key driver of global energy, despite the swift transition towards renewable resources.

The OPEC9 Seminar will take place later on Thursday, featuring Kuwaiti Minister of Oil Tareq Al-Roumi alongside oil and energy ministers from OPEC and beyond, as well as leaders from the oil and natural gas sectors, energy experts, and decision-makers.

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