Global Energy Investment and Market Dynamics

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Global Energy Investment Must Scale Up to Meet Growing Demand

OPEC Secretary General Haytham al-Ghais warned that the sustainability of the world’s energy system hinges on significantly increased investment across all energy forms. The warning, echoed by observers citing newspaper reports from Emarat Al Youm, highlights a shared concern about the adequacy of funding as demand rises with population growth and expanding economies.

Al-Ghais stressed that demand for energy will rise as the global economy expands. He pointed to the oil sector, which is projected to account for about one third of total world energy consumption by 2045, as needing sustained, worldwide investment. In his calculations, he cited a figure of roughly 12.1 trillion dollars in cumulative investment, equal to about 500 billion dollars each year.

He emphasized that the energy sector, its producers, and its consumers require a long term and favorable investment climate. The Secretary-General warned that chronic underinvestment must be addressed and rectified to avoid jeopardizing energy security and availability for the world.

During discussions in March, al-Ghais reiterated concerns about the consequences of insufficient investment in energy and the potential risks to security and access to energy supplies. He also called for balancing the climate agenda to ensure fairness and inclusivity in the transition to cleaner energy sources.

In related developments, major energy firms and their profits came under scrutiny regarding how earnings should be used in the context of the Ukraine conflict. Herman Galushchenko, the head of Ukraine’s Ministry of Energy, assessed substantial profits earned by global oil majors including Shell, BP, Chevron, ExxonMobil and Total in 2022. He described these profits as potentially record-setting and argued that a portion should support Ukraine’s energy infrastructure rebuild. The latest United Nations estimates indicate that rebuilding Ukraine will require more than 400 billion dollars after the conflict ends, with the figure continuing to rise. This revenue consideration is part of a broader conversation about how energy profits can support resilience and recovery in regions affected by geopolitical tensions, alongside the need for fair distribution of energy costs and investments globally.

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