OPEC "Insufficient Oil and Gas Investment May Cause Market Volatility"

Hi-Tam Al Gais OPEC Secretary-General
Remarks at Dubai Middle East Oil and Gas Conference

Hi-Tam Al-Ghais, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), said that a lack of investment in traditional energy sectors such as oil and gas could cause long-term market volatility, according to major foreign media reports on the 22nd (local time).

According to the reports, Secretary General Al-Ghais made these remarks at the Middle East Oil and Gas Conference held in Dubai, United Arab Emirates (UAE), stating, "This is the truth that must be told." OPEC estimates that $12.1 trillion (approximately 1,500 trillion KRW) in investment will be needed to meet the world's growing long-term oil demand.

[Image source=Reuters Yonhap News]

Regarding this, Secretary General Al-Ghais emphasized that large-scale investments to reduce carbon emissions are necessary rather than an energy transition that stops oil usage.

At the conference, Perry Fesharaki, Chairman of energy consulting firm Fact Global Energy (FGE), said, "If Russia's oil production does not increase due to Western sanctions, there could be a supply shortage in the future."

Chairman Fesharaki also assessed that although Russia, which produces 10 million barrels of oil per day, has the capacity to increase production by an additional 2 million barrels per day, the possibility of increased production is low due to various Western sanctions. He analyzed that OPEC Plus (+) member countries, consisting of OPEC and non-OPEC oil-producing countries, want to earn significant profits before oil demand reaches its peak, stating, "Oil-producing countries will try to maintain oil prices above $80 per barrel."