OPEC Boss slammed the net-giro goals, promotes a large future for oil in the Calgary speech
The general secretary of the organization of petroleum exporting countries says that the thirst of the world for oil will continue for decades to come and investment in this area is necessary to meet those needs.
Hatham al-Ges made his comment in a speech for the global energy show in Calgary on Tuesday, at a time when oil prices are relaxing and experts estimate they may fall further later this year.
He said in his speech, “Simply say, there is no peak in the demand of oil on women and gentlemen, horizons. The fact that the demand for oil keeps increasing, hitting the new record on the year, is a clear example of what I am saying,” he said in his speech.
Demand for primary energy is estimated to increase by 24 percent between 2050, he said, crossing 120 million barrels of oil in a day. Currently, the demand for oil is about 103 million barrels per day.
He said, “It would be possible to meet this frequent demand only in the oil industry with enough and timely investment,” he said, $ 17.4 trillions in investment in the next 25 years pointing to us the need for investment.
Appreciation for Alberta Oil and Gas
The General Secretary used his speech to admire Alberta’s oil and gas industry, which has a leader to increase production over years, its technical improvements, and its role in developing carbon captures and storage facilities.
He said that OPEC said OPEC stated that climate change “very, very seriously,” and each of its member countries signed the Paris Climate Agreement.
Nevertheless, he criticized the net-geiro targets as “unrealistic, time frame” and “different from reality” by companies and countries.
Instead, he said that the world should focus on using all forms of energy to reduce emissions and meet the needs of the world’s growing population.
In 2024, according to the International Energy Agency, emissions from the energy sector increased by 0.8 percent compared to 2023, while the global economy increased by more than three percent.
In Canada, the federal government is already recalling its 2030 target to cut carbon emissions at least 40 percent from the level of 2030.
Challenging time
The speech comes at a time when oilpatch is facing weak commodity prices and many companies are pulling back on investment.
OPEC countries are producing more this year, as well as over production from Canada, America and Guyana. Last month, the Vienna-based Cartel agreed to increase the production of 411,000 barrels in a day in June, increasing the gradual return of 2.2 million barrels a day.
For reference, Canada produces a total of about five million barrels per day.
At the same time, the global consumption of oil is not increasing initially due to slowing global trade.
“Demand is not falling, but we are in a period where the increase in demand is weak.
Big decline forecast
North American oil prices are around $ 65 per barrel average in recent times, but the latest oil forecast of S&P released this week estimates that prices may fall into a barrel per $ 40 at the end of this year.
“We can see a significant difference in the price by the end of the year, where we are now. A lot depends on the economy, of course, and concern about tariffs and OPEC+ can change its decisions at any time. But right now, at current trends, it seems that at the end of this year, it seems that there is a lot of supply against the demand at the end of this year,” he said.
More than 30,000 people from 100 countries are expected to participate in the global energy show in Calgary this week.
