OIL MARKET: We are cautiously optimistic of rebounce —OPEC
By Eyo Nsima
The Organisation of Petroleum Exporting Countries, OPEC, has expressed cautious optimism over the possible rebounce of the oil market in 2021.
Speaking at the S&P Global Platts Americas Petroleum and Energy Conference, 27 January 2021, HE Mohammad Sanusi Barkindo, OPEC Secretary-General, said: “Nonetheless, we are cautiously optimistic for the global economic rebound in 2021, and for significant oil demand growth. But we will continue to take a month-by-month approach to assess market conditions, and stand ready to take any necessary actions through the DoC.
“In looking further ahead, oil market stability, and more broadly, energy market stability, will be vital to the energy transition.
“Stability begets stability, and this will be essential to help bring on board the huge investments required in the years ahead. Our World Oil Outlook (WOO) 2020 shows that $12.6 trillion will be required between now and 2045 in the upstream, midstream, and downstream oil sectors.
“To place this in some further context, our current assessments show that upstream capital expenditure could have fallen by more than 30% in 2020, beyond the 23% losses experienced in both 2015 and 2016. If this is not rectified it could leave long-term scars, not only for producers but consumers too.
“The return of investments is a core objective of the DoC. And, of course, huge investments will be required across all energies.
“The multilateral approach of the DoC has shown just what can be achieved by working together, but as I think we can all appreciate, the future will need the coalescing of a broader coalition to tackle the energy challenges in the years ahead. What is clear to all of us is that the world will continue to need more energy in the decades ahead.”
He added: “In the near-term, as we recover from the COVID-19 pandemic, and looking longer term to 2045, as the global economy is expected to more than double in size, world population is projected to grow by over 1.7 billion people and given that we need to rid the world of the scourge of energy poverty, bringing light, heat, power, and low-emission fuels for cooking to billions that still go without.”
