There is a high need for robust investment in the oil sector to evade the increase in oil prices worldwide, as the demand from developing countries will rise considerably.
According to the statement of the UAE’s Minister of Energy, Mohammad Bin Dhaen Al Hameli, to save the world from yet another increase in oil prices, there is a need of substantial oil investments, as reported by XPRESS.
OPEC has noted that by 2030, oil demand across the world will reach up to an anticipated 113 Million Barrels per day, surging continuously by nearly a third. Developing countries will account for 90% of this expected growth, with over half of the demand emerging from the transport sector.
Addressing the 17th Annual Middle East Petroleum and Gas Conference (MPGC 2009) Mr. Hameli stated, “world has enough oil resources to meet the rising demand for decades to come.” He further said, “Demand for gas will continue to rise focusing the emphasis on bringing this energy to the market.”
Mr. Hameli also noted, “Looking beyond the short term concerns of the current crisis, I believe the industry needs to continue working towards meeting the challenges of a more carbon-constrained world. This will add to the growing number of laws and regulations that are already affecting the energy sector across the world.”
Moreover, renewable energy will certainly become a vital component of the energy landscape. The UAE strongly feels that the hydrocarbon producers must take the advantage of this trend. The world requires a diversification of energy sources to realize the actual worth of energy.
According to experts, the situation is getting worse. Overcapacity has risen significantly and oil producers are left with lower margins. Several oil refinery projects are being postponed or cancelled, while those under construction will continue pressurizing the margins for a long time.
According to a Research Analyst at RNCOS, “Oil exporter countries must either increase compliance rate on the output cuts or give consent on further cut down in oil production to combat the effect of building up of a new stock.”
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