Lagos — Mohammad Barkindo, Secretary-General of OPEC has called on stakeholders in the oil and gas sector not to slow down on investing in the oil and gas sector, as this could have adverse effects in the future.
He made the call at the 1st Technical Workshop with Energy Companies held on Monday.
According to him, although the group called the OPEC+ is not against protecting the climate against harmful emissions, radical calls for an immediate discontinuation of
investments in the oil and gas sector will cost the sector more than it bargained for.
He said oil and gas will continue to play an important role in the industry in the medium to long term.
“The fact remains: the world needs energy, energy requires investment and investment relies on companies.
“…However, as many of you are aware, some voices in the industry continue to call for a rapid transition to a carbon-free economy, which even includes some radical calls for an immediate discontinuation of investments in oil and gas. The debates on these issues will be front and center at the upcoming UN Climate Change Conference (COP26) that starts on the 31st of October in Glasgow, Scotland.
“OPEC and its Member Countries will be actively involved in these meetings to ensure that a balanced and equitable approach is adopted as we seek to mitigate the impacts of climate change.
“Let me make it clear that OPEC supports the need to reduce emissions, bolster innovation and enhance efficiency, however this cannot come at the cost of depleting industry investment. The fact remains: the world needs energy, energy requires investment and investment relies on companies”, he said.
OPEC estimate puts cumulative oil-related investment requirements to a total of approximately $11.8 trillion from 2021 to 2045.
Meeting these levels of investment, Barkindo said, will require major commitments by industry stakeholders across the value chain.
Industry investment took a major hit last year, sinking by a massive 30%, due to the adverse impacts of the pandemic.
The OPEC Sec-Gen said if this trend were to continue, the world could see a supply shortfall and the potential for unwanted volatility, risks to energy security and potentially geopolitical ramifications.
“These are eventualities that no one in this industry wants to see. Thus, stakeholders across this industry must unite to seek out a balanced and fair approach to this issue”.
According to him, only through increased dialogue and cooperation will make sure that all voices are heard and all viewpoints are considered.
“The fact is that different countries around the world have diverse needs and varying capabilities, and therefore reducing emissions should have multiple paths”, he said.