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The global oil industry will need to invest over $10 trillion by 2040 to replace declining output capacity and ensure there’s plenty of supply in upcoming years. OPEC president Suhail Mohamad Al-Mazrouei said Tuesday.
Speaking at the IP Week Conference in London. the official. who’s also the energy ministry for the UAE. urged the industry to start taking action in terms of investment commitments as the clock is ticking. and it takes time for production to come online after a final investment decision (FID) is reached.
Al-Mazrouei said 2017 was a “remarkable“ year which. through the cooperation between OPEC and its non-OPEC allies. paved the way for a rebalancing of supply and demand fundamentals this year.
“We. as OPEC. are keen to see this restoration in the market and to work with every country. whether they are an IOC (international oil compny) or shale oil producer or anyone to ensure that we have enough supply in the market.“ he said.
After successful cooperation between the 24 producing countries inside and outside OPEC. Al-Mazrouei will propose a framework through which their cooperation can be extended. particularly with Russia.
“This group have built enormous trust among themselves and have over delivered.“ on their promises. the official said. noting total compliance with the 1.8 million barrels per day (MMBPD) of cuts averaged 107% last year.
Al-Mazrouei said a draft of new guidelines for cooperation is yet to be discussed and approved. He hopes the deal can be finalized this year. but said it may take longer to reach a consensus.
There’s speculation OPEC is willing to make official Russia’s involvement with the group. going far beyond the expiration of their cooperation deal to curb oil production and rebalance the market.
When asked whether OPEC had invited the U.S. to join in the output to drain the supply overhang. the minister said despite the group’s openness that would be “very difficult.“ This is because there are so many producing companies and it would be hard to put them all under one umbrella.
