Source: Golden Ten Data
The Secretary General of OPEC said that OPEC is optimistic about demand, that backup production capacity is quite low, and called for increased investment. The UAE Minister of Energy responded...
OPEC Secretary General Haitham Al Ghais said at an energy industry event held in Abu Dhabi on Monday,OPEC is optimistic about demand and believes that underinvestment is a risk to energy security.
He emphasized the importance of continuing to invest in the oil and gas industry and said he believed calls to stop investing in oil would be counterproductive.
Al Ghais said,”We still think this year's oil demand is as flexible as last year”. He pointed out that OPEC estimates demand will increase by more than 2.3 million b/d over the same period last year.
He added that investments in the oil and gas industry are important for energy security.
He said,”Our backup capacity is quite lowWe have emphasized this time and again, which requires all stakeholders to work together to recognize the importance of investing in this sector”.
UAE Energy Minister Suhail al-Mazrouei (Suhail al-Mazrouei) also responded to this appeal. He said,Both international and local oil companies need to invest.
“This means that the financial community needs to continue to fund oil and gas,” Mazrui said. “We've been warning for a long time.Still think it's a question to attract investment. Committing to climate change should not prevent us from investing our resources. The market needs to reach a point where investors are motivated to invest, and the market has picked up somewhat this year”.
Also, he said,”We will never target a specific oil price. As producers, we care about whether prices are right for consumers, but we are short-sighted about what is right for consumers for only a limited period of time. What I'm worried about is not a market that is undersupplied in the short term, but a market that is undersupplied in the long term”.
He later said that the UAE is expanding its oil production capacity from the current 4.2 million b/d to 5 million b/d in 2027 as planned.
According to a Reuters survey,OPEC's oil production in September increased by 120,000 b/d compared to August, reaching 27.73 million b/d, mainly driven by increased production in Nigeria and Iran.