OPEC Calls It Need 12 Trillions US Dollars For Oil And Gas Investments Until 2045

Senior Upstream Oil Industry Analysis Organization of Petroleum Exporting Countries (OPEC) Mohammad A. Al Kazimi. (Photo: Mery Handayani/VOI)

BALI - The development of the oil and gas sector in the world is known to require a large amount of investment. In fact, the amount is projected to reach 12 trillion US dollars, or equivalent to Rp. 187,731 trillion for investment by 2045.

This was conveyed by Senior Upstream Oil Industry Analysis of Petroleum Exporting Countries (OPEC) Mohammad A. Al Kazimi.

He said, the fantastic amount of this investment was to be distributed to the upstream, middle or process sector and downstream oil and gas sectors.

"We continue to repeat what we have said in the previous view, large investment is needed. In 2045, our projection shows that investment of more than 12 trillion US dollars will be needed upstream, middle and downstream," he said in the 3rd International Convention on Indonesian Upstream Oil and Gas (IOG), at BNDCC, Nusa Dua, Bali, Thursday, November 24.

Furthermore, Mohammad A. Al Kazimi explained that the investment is not without basis. One of them is the impact on global economic growth which is considered to be running positively. "Given the current pressing challenges, it is important to remember that the well-funded oil sector provides many tangible benefits for the global economy. In addition to supplying energy sources that are urgently needed for our lifestyle, this industry also provides a lot of high-paying, high-performance, and stable work," he explained. In addition, Mohammad A. Al Kazimi believes in the process of transitioning fossil energy to renewable new energy (EBT), there is still room for the oil and gas industry. That is, the entire type of energy is still needed. "There is no one-size solution for all for the future of sustainable global energy," he said. In addition, it is related to the picture or outlook of future energy absorption, Mohammad A. Al Kazimi admits that OPEC also has special attention to EBT. In fact, he continued, solar energy and winds are alleged to have the fastest growth trend.

To that end, OPEC members are aware of the need to expand the energy mix to address the challenges of climate change.

One of his efforts, in line with the Paris Agreement, OPEC agreed to start an ambitious plan to diversify its energy portfolio. Furthermore, Mohammad A. Al Kazimi assessed that oil has a fairly good market share in the medium term.

In fact, according to him, his demand will continue to increase. "Projections also show that oil will maintain its highest share in the global energy mix as demand for oil products continues to increase in the medium term and even though demand in the long term is unstable," he said.

In addition, he said, given the current situation, the uncertainty of the prospect of supply and demand remains high, mostly due to a lack of clarity about the level and timeliness of investment in the energy sector. Despite the high demand, Mohammad A. Al Kazimi assesses that there are still problems that need to be faced. For example, the question of the energy crisis is considered a major challenge.

"It is important to remember that in 2020, around 733 million people remain without access to electricity and about 2.4 billion people still lack access to clean cooking solutions, accounting for a third of the world's population," he concluded.