OPEC sees $ 10 trillion investment till 2040: Is it reading the writing on the wall correctly?
Dec 01: No one needs a hike in oil prices more than the countries which make up the OPEC 8But attempts to cut production to raise prices are not bearing fruit and the frustration on this count is already evident. 8OPEC firmly believes that rebalancing is underway: Non-OPEC supply is falling while global demand is expected to grow at healthy levels of around 1.2 million barrels per day in 2016 and 2017 8But the huge stock overhang of 300 million barrels over and above the five year average is not helping prices to go down. 8In the long run, OPEC seems to have been enthused by its latest estimate that global demand will scale 109 million barrrels by 2040, a healthy increase of 16 million barrels per day over current levels. 8And to be able to maintain this level of supply, the world will need an investment of a massive $ 10 trillion. 8Juxtaposed against this background is the immediate fall in global capex in 2015 and 2016, with the trend possibly continuing in 2017. 8There is no mention however in the OPEC president Dr. Mohammed Bin Saleh Al-Sada, Qatar's Minister of Energy and Industry's speech yesterday at the 17th OPEC Conference of global warming and its terrible consequences or of the call to put a halt to production from new fields to keep the global temperature increase limited to 2 degrees. 8Nor is there any mention of transformative technology that can halt the rising appetite for oil and gas across the world Click on Reports for more