Even under-investment in oil and gas industry will set off market volatility: OPEC’s Al Ghais

Even under-investment in oil and gas industry will set off market volatility: OPEC’s Al Ghais

Dubai: Any disinvestment - or even under-investment - in the oil and gas sector, could cause market volatility in the long term and imperil global growth, according to a top OPEC official. "OPEC has been very clear in highlighting the real and dangerous consequences of under-investment in the oil industry," said Haitham Al Ghais, Secretary-General of the Organisation of Petroleum Exporting Countries. "It endangers energy security and jeopardises sustainable development." Al Ghais was speaking at 30th annual Middle East Petroleum and Gas Conference (MPGC) that opened in Dubai. According to OPEC estimates, the world needs $12.1 trillion in investments to meet rising oil demand in the long run. "The reality is that oil and gas will continue to be an integral part of the energy mix for the foreseeable future,” the OPEC official added. According to its global outlook, oil is expected to retain the largest share in the energy mix throughout the outlook period accounting for almost 30 per cent in 2045. Al Ghais added: "Given these high stakes, as an industry, we need to speak with one voice louder than ever before." With global oil demand growth at around 8 million barrels per day (bpd), the world could