The Organisation of Petroleum Exporting Countries (OPEC) says the global energy sector requires about 12.6 trillion dollars investment cumulatively for development by 2045.<\/p>\n\n\n\n
The Secretary General of OPEC, Dr Mohammad Barkindo made the disclosure while presenting a keynote address at the 14th Annual Conference of the Nigerian Association of Energy Economics (NAEE) in Abuja on Wednesday<\/p>\n\n\n\n
The theme of the Conference was: \u201cStrategic Reponses of the Energy Sector to COVID-19: Impact on African Economies\u201d.<\/p>\n\n\n\n
He said that oil would continue to remain relevant to the global economic growth and development.<\/p>\n\n\n\n
\u201cIt is vital for us to remember that oil will remain the largest contributor to the energy mix to 2045 with more than 27 per cent, according to the latest OPEC World Oil Outlook.<\/p>\n\n\n\n
\u201cRenewables are developing most rapidly, but at the same time, the world\u2019s economy is set to double and all resources will be required to meet this growing need.<\/p>\n\n\n\n
\u201c Cumulative investment of 12.6 trillion dollars in the upstream, midstream and downstream is crucial through to 2045 in order to meet this need,\u2019\u2019 he said.<\/p>\n\n\n\n
According to him, investment in 2020 dropped by more than a whopping 30 per cent in the face of COVID-19, even worse than the dramatic declines seen in the severe 2015-2016 industry downturn.<\/p>\n\n\n\n
He said that the energy security risk that would result from too little investment would heavily impact both producers and consumers.<\/p>\n\n\n\n
He noted that oil-producing developing countries, like Nigeria, would be particularly hard hit.<\/p>\n\n\n\n
\u201cHistory has shown that energy insecurity brings with it economic insecurity and geopolitical instability.<\/p>\n\n\n\n
\u201cAll OPEC Members, including Nigeria, will have to re-strategise to maintain their positions in the new global energy mix, including focusing on economic diversification.<\/p>\n\n\n\n