Daily Management Review

OPEC+ estimates reduction in oil investments at $500bn a year


The amount invested in the extraction of oil worldwide is decreasing on average by $500 billion a year, and this may result in affordability and security issues, said Haitham Al Ghais, the general secretary of OPEC+.

Roy Luck
Roy Luck
"The amount of investment going into the oil industry has significantly decreased, by more than $500 billion in one year," Mr. Al Ghais said at the Houston CERAWeek energy conference.

He forecasts that the daily demand for crude will rise by 2.3 million barrels in 2023. China and India will account for the majority of the supplies.

In addition, Haitham Al Ghais said that OPEC+ was unconcerned about the Russian oil exports being diverted from Europe to Asia. "We are not particularly concerned about it. In the 30 years I've worked in this industry, flows have consistently shifted from east to west and vice versa due to geopolitical events," he said.

In February, Haitham Al Ghais forecasted that the level of oil demand in 2023 would surpass pre-demand and come close to 102 million barrels per day. Bloomberg notes that oil prices will reach $100 per barrel due to a recovery in Chinese production.

source: bloomberg.com