OPEC Boss Urges Oil-and-Gas Projects

OPEC Boss Urges Oil-and-Gas Projects
Official warns of more energy shortages, volatility without new fossil-fuel investment

VIENNA—OPEC’s secretarygeneral said consumers should brace for more energy shortages unless the world boosts investment in new oil-and-gas development, the cartel’s first, fullthroated response to increasing calls to limit such spending. In May, the International Energy Agency, an energy BY BENOIT FAUCON AND SUMMER SAID watchdog for richer countries, said investment in new fossilfuel supply projects must immediately cease if the world is going to slash net carbon emissions to zero by 2050. Meanwhile, big oil companies have made moves to curb emissions and pivot toward renewable energy sources, spurred by pressure from investors, customers and in some cases governments and courts. If that all results in lower investment in finding and pumping new deposits of crude and natural gas, the world risks more of the sort of energy-price volatility it is seeing now, said Mohammed Barkindo, the head of the Organization of the Petroleum Exporting Countries, in an interview. “The energy crisis in Europe and many parts of the world is a wake-up call,” he said, adding, “It all comes back to the issue of investment across the oil-and-gas industry.” Natural-gas prices have soared amid low inventories in the U.S. and Europe, while high coal and gas prices and government efforts to cut electricity use have led to power cuts in China. Global oil prices, meanwhile, have soared this year, and are near their highest levels in three years. The global energy crunch comes at a time of extraordinary demand, as economies bounce back after near hibernation amid the worst months of the pandemic. Mr. Barkindo said, however, that past bouts of underinvestment in new fossil fuels, and today’s pressure to curb new investment even more, have exacerbated the volatility by sapping supplies. OPEC, a group of some of the world’s largest producers, said earlier this past week that the world is projected to require $11.8 trillion in oil-andgas investment through 2045 to meet growing demand. In 2020, Mr. Barkindo said oil-and-gas investment fell 20%. That came despite the industry not fully making up for a previous period of underinvestment amid low prices between 2015 and 2016. “We need to buckle up more investment in capital to revive the production cycle,” he said. “On top of that contraction, you have the energy transition,” he said, which has added more pressure on governments and oil companies to divert money from oil-and-gas development to renewables. Mr. Barkindo said there has been “a global campaign [against] the oil industry to crowd out investors out of oil and gas.” OPEC is set to meet Monday to decide whether to pump more crude. At the start of the pandemic, the cartel and a group of allied producers led by Russia sharply reduced output to stabilize falling prices. In recent months, the two groups have been working together to slowly restore that output. Mr. Barkindo’s call for more oil-and-gas investment comes ahead of the United Nations’ first major summit on climate since the Paris agreement in 2015. Governments will meet in November in Glasgow, Scotland, to discuss ways to lower greenhouse-gas emissions.

Oct 2, 2021 15:33
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The section of oil, gas and petro-chemistry is the up-most and first industrial vantage of the country and the pivot of the Economy of Iran. Regarding the importance of this section and the need for coordinating and organizing the most active people in the field of production and exporting oil ,gas, and petrochemical products ,some forethoughtful and job- makers in the private section of the country decided to come together to fight against the threats by using the opportunity of mass intelligence and potentials.