BAKU, Azerbaijan, October 31. OPEC estimates $12.1 trillion of oil industry investment needs by 2045, Trend reports via the latest World Oil Outlook (WOO) from OPEC.
“This is slightly higher than assessed in the WOO 2021, as upward-revised demand projections and assumed cost inflation in the short- and medium-term more than offset the forecast period being one year shorter. Upstream needs make up $9.5 trillion, while downstream and midstream requirements are $1.6 and $1 trillion, respectively,” the report said.
At the same time, the chronic lack of investment in the global oil industry in recent years due to industry downturns, the COVID-19 pandemic, as well as policies to cut off financing for fossil fuel projects, is a cause for deep concern, OPEC noted.
Meanwhile, “risks to the economic outlook, high inflation, energy policy goals confronted with energy security challenges, and questions regarding a perceived shortfall in upstream investment, coupled with persisting and new geopolitical uncertainties, means that significant risks regarding the longer-term liquids supply outlook remain,” the report added.
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