Opec will continue to be source of global oil market stability

Haitham Al Ghais, Opec Secretary General, affirmed that Opec has, and will continue to be a source of stability; a vital cog in the energy industry landscape; and a voice that underscores the importance of oil and petroleum products to the world in the decades to come.

‘’The importance of market stability can also be viewed in the fact that oil remains vital to almost every facet of daily life. Societal and economic prosperity depend on oil and petroleum-derived products. Without them, cars, buses, trucks and lorries would be stranded, airplanes would be grounded, the construction sector would all but grind to a halt, food production would be devastated, and health products would be difficult to produce, said Al Ghais in a statement marking Opec’s 65th anniversary.

Opec’s unifying vision and core objectives from 1960 have driven the Organization over the past six-and-a-half decades, proving truly timeless and serving as a stable foundation stone. Today, Opec has 12 Member Countries and is respected far and wide as an established part of the international energy community and multilateral system. The Organization was in fact registered at the United Nations Secretariat on 6 November 1962, he added.

According to Al Ghaith, Opec has grown in stature and become a household name in the field of energy. This was further enhanced in late 2016 when it joined with a number of non-Opec producers through the Declaration of Cooperation (DoC), or Opec-plus, a group that was central to helping the oil industry, and the global economy, overcome the huge ramifications of the COVID-19 pandemic.

Looking ahead, he said, oil will remain vital in the future, with Opec’s latest World Oil Outlook 2025 seeing oil demand rising to around 123 million barrels a day by 2050. This expansion is driven by the fact that the world will need more energy as economies and populations expand. Energy security for all is critical and is inconceivable without oil.

Moreover, he continued, with billions of people in the developing world continuing to be impacted by energy poverty, it is vital to look at how this growth can be achieved in a sustainable way by all the various energies, balancing the needs of people in relation to their social welfare, the economy and the environment. The focus must be on an all-energies, all-technologies and all-peoples approach.

‘’Just as in 1960, Opec believes in prudent and realistic approaches to tackle the energy challenges and opportunities before us, with market stabilization efforts remaining to the fore, as we all look to chart appropriate future energy pathways for nations and peoples worldwide,’’ he noted.

‘’While the future is never easy to predict, Opec’s history and rising energy and oil demand suggest that any claims of the Organization’s waning importance, or indeed any predictions of peak oil in the coming decades, should be taken with a grain of salt,’’ he said.

In July, Haitham Al Ghais affirmed that the world will need more energy in the coming decade and stressed the need to ensure oil supplies are delivered in a stable and secure manner.

Speaking on the sidelines of the 9th OPEC International Seminar held at the organisation’s headquarters in the Austrian capital, Vienna, Al Ghais underlined the urgent requirement for substantial investments in the energy mix.

He said this must be accompanied by an integrated approach that includes the use of modern technologies, emissions reduction, and consideration of the needs of oil markets, particularly in non-energy-producing countries.

Al Ghais also announced the launch of OPEC’s 2025 World Oil Outlook report during the seminar. This marks the first time the organisation has released its annual outlook during the event.

He noted the importance of the report, which outlines OPEC’s projections on the complex and interrelated issues shaping the development of the global oil market. The publication provides valuable data and insight for policymakers, decision-makers, industry experts and energy companies. In February, Haitham Al Ghais said that investment needs in the oil sector will remain substantial to reliably meet the expected growth in oil demand, with cumulative investment requirements estimated at $17.4 trillion between 2024 and 2050, or approximately $640 billion annually.

In statements to the Emirates News Agency (WAM) during the World Governments Summit (WGS) 2025, Al Ghais highlighted that the exploration and production sectors will absorb the largest share of investments in the oil sector, with total investment needs in these areas estimated at $14.2 trillion, or around $525 billion annually.

Additionally, investment needs in refining, manufacturing, transportation, and storage are expected to reach approximately $1.9 trillion and $1.3 trillion, respectively, over the same period.

He explained that Opec’s priorities include supporting and ensuring global oil market stability to secure reliable, cost-effective, and regular petroleum supplies for consumers, a steady income for producers, and a fair return on capital for investors in the petroleum industry.

The Secretary-General emphasised Opec’s commitment to securing the future of energy across all types and sources to address energy poverty and promote prosperity for inclusive economic growth under the “all-peoples, all-fuels and all-technologies” approach.

WAM