Oil investment lag sowing seeds for future energy crises: OPEC
Brent crude futures picked up $1.09, or 1.15 percent, to $95.74 a barrel at 7.30 a.m Saudi time
Oil prices rose in early trade on Wednesday after industry data showed a surprise drop in US crude stockpiles, suggesting demand is holding up despite steep interest rate hikes dampening global growth.
Brent crude futures picked up $1.09, or 1.15 percent, to $95.74 a barrel at 7.30 a.m. Saudi time, while US West Texas Intermediate crude futures rose $1.19, or 1.35 percent to $89.56 a barrel.
Oil investment lag sowing seeds for future energy crises: OPEC
The world must act swiftly to invest in oil to prevent future energy emergencies as global demand for hydrocarbon grows in the long term, Haitham Al Ghais, the secretary general of the Organization of Petroleum Exporting Countries, known as OPEC, said on Tuesday.
“If we don’t get it right this time we are sowing the seeds for future energy crises — not just one, but multiple,” he told Reuters in an interview.
Al Ghais sounded a note of optimism that policymakers at the upcoming COP27 climate summit will be more open to hearing the oil industry’s point of view on the climate change debate.
He was speaking a day after the organization released its 2022 World Oil Outlook which estimated that $12.1 trillion was needed in investments to meet rising oil demand in the long term.
Of the total, $9.5 trillion would be for exploration and production, or upstream, investments, he said.
“It is critically important for the future because of the time it takes for investments to come online.”
“The average annual decline rates are around 4 percent-5 percent so you are talking about needing to add 5 million bpd just to maintain today’s global production, let alone future demand,” Al Ghais said. “We are already falling behind that and feeling the implications on a wider scale.”
The OPEC forecast, which saw demand for oil plateau by 2035, put demand at 109.8 million barrels per day by 2045.
Rosneft says BP should return to Russia
Russian energy giant Rosneft said on Tuesday that international major BP should rethink its decision to leave Russia and return to its operations in the country, promising more dividend payouts.
Rosneft’s CEO Igor Sechin said last week that BP is entitled to $700 million in second-half 2021 dividends, which Rosneft transferred into special “C” accounts in Russia, while BP remained Rosneft’s “shadow” shareholder.
Many Western companies, including oil majors, have left Russia since Moscow sent its armed forces into Ukraine on Feb. 24. Rosneft accounted for around half of BP’s oil and gas reserves and a third of its production.
“We can only heartily advise our colleagues from BP to remove the issue of exiting assets in Russia from the agenda and return to their native bosom,” Rosneft said.
Rosneft also said its board will discuss payment of nine-month 2022 dividends later this month and BP may “increase its earnings from the Russian business by another around $700 million.”
Libya NOC chief says oil output 1.2mbpd, expects no disruption
The head of Libya’s National Oil Corp. said on Tuesday that oil output had risen to 1.2 million barrels per day from 600,000 bpd three months ago and that NOC does not expect any disruption in oil production.
between the two sides.
Through this agreement, GACA seeks to achieve some of the objectives in the National Transport and Logistics Strategy to enhance the competitiveness of the sector and to contribute to the transformation of the Kingdom into a global logistics hub for Asia, Africa, and Europe. Objectives in the National Transport and Logistics Strategy include transporting up to 330 million passengers by 2030.
Earlier in 2022, GACA signed a similar MoU with Poland to regulate the operational framework of air transport between the two countries.
Both MoUs are in accordance with Saudi civil aviation sector strategy, which aims to elevate the number of local and international flights to over 250 destinations and to attract many international lines to use the Kingdom’s airports.