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Global Oil and Gas Projects to Need $16 Trillion by 2040 - OPEC


The global gas output is expected to increase from current 9.91 billion cubic meters per day (bcm/d) to about 16.7 bcm/d by 2040, Mohammad Sanusi Barkindo, OPEC Secretary General said on November 7.

Looking to the future, the 2016 World Oil Outlook sees global oil demand increasing from around 93 million barrels a day in 2015 to over 109 million barrels a day by 2040, Barkindo said during the 2016 Abu Dhabi International Petroleum Exhibition and Conference, OPEC’s official website reported.

“Estimated oil-related investment requirements are close to $10 trillion in the period to 2040. And from the perspective of gas, the number is around $6 trillion”.

He added that oil and gas are still expected to contribute 53 percent to the global energy mix by 2040.

“At the global level, however, the situation that has evolved over the past two years or so, is putting this future at risk given the dramatic drop off in investments. Global oil and gas exploration and production spending fell by around 26 per cent in 2015 and a further 22 per cent drop is anticipated this year. Combined, this equates to above $300 billion,” Barkindo said.

Barkindo said that if market and financial conditions do not improve, there is the distinct possibility of a third year of investment cutbacks. To put this into some oil industry context, there has never been a consecutive three-year decline in its history:

“This is a major concern for an industry that needs regular and predictable investments to provide the necessary supply in the medium- and longer terms”.

Source: Global Oil & Gas 



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