*Says Nigeria Critical To Global Energy
By Teddy Nwanunobi
More than $12 trillion will be needed in the upstream, midstream and downstream globally by 2045, according to the projections of the Organisation of the Petroleum Exporting Countries (OPEC), its Secretary General, HE Mohammad Sanusi Barkindo, said in Abuja on Monday.
Barkindo, who spoke at the virtual Nigeria International Petroleum Summit (NIPS) 2021 Pre-Summit Conference and official launch of ‘The Decade of Gas’, hinted that capital expenditure in the upstream oil could fall by more than 30 per cent in 2021.
“It is also important to remind ourselves of the historic plunge in oil and gas investments in 2020. In the oil sector alone, upstream oil capital expenditure could fall by more than 30 per cent in 2021, a shrill wake-up call, exceeding the annual dramatic declines seen in the severe industry downturn in 2015 and 2016.
“To put this in some perspective, globally, to 2045, our projections show that investments of more than $12 trillion will be needed in the upstream, midstream and downstream,” Barkindo said.
Earlier in his goodwill message, Barkindo said that Nigeria was important to global energy, as the world needs more energy.
“The OPEC’s World Oil Outlook (WOO) sees natural gas as the fastest-growing fossil fuel over the forecast period, driven by higher urbanisation rates, industrial demand and its (competitiveness) over coal in power generation.
“Moreover, at the end of the WOO forecast period in 2045, oil and gas are still expected to make up over 50 per cent of the global energy mix.
“In fact, global primary energy demand is set to increase by 25 per cent in the period to 2045. The world needs more energy, and Nigeria, as a reliable and dependable supplier of hydrocarbons to global markets, has a key role to play in this regard.
“At the same time, there is the ongoing energy transition and the associated challenge: ensuring there is enough energy supply to meet future demand growth, and achieving this in a sustainable way, balancing the needs of people in relation to their social welfare, the economy, and the environment.
“Looking at the scale of the energy transition challenge, we need to utilise all resources efficiently.
“Tackling emissions has many pathways, and we need to explore them all. The oil and gas industries are part of the solution. We possess critical resources and expertise that can help unlock our carbon-free future,” he added.