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- Dubai 04:32 05:49 12:21 15:48 18:47 20:04
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Opec is expected to pump nearly $680bn (Dh2.5trn) into projects in 25 years to expand its crude oil production capacity to meet growing global demand, according to a Western oil executive.
The investments are part of a $9.5trn to be channelled by world oil producers and consumers into crude and gas development ventures and in infrastructure projects to ensure sufficient supplies in the long term, said Noe Van Hulst, Secretary General of the Riyadh-based International Energy Forum, which groups nearly 100 oil producing and consuming nations. “Cumulative upstream oil investment requirements by Opec alone are estimated at $680bn between 2005 and 2030,” Hulst said at a recent meeting of the ambassadors of IEF members in Riyadh. About $110bn will be required by the 13-nation Cartel until 2010 while nearly $260bn will be invested between 2010 to 2020 and the rest until 2030. Upstream investments, which cover oilfield development and production, were estimated at more than $900bn in the Organisation of Economic Development and Co-operation (OECD) while nearly $400bn would be required in former Soviet Union, Hulst said, citing latest estimates by the International Energy Agency (IEA). He put total global oil investments (upstream, downstream and infrasturucture) at around $5.3trn and gas at $4.2trn. Hulst gave no breakdown for individual oil producers but the Middle East is expected to have the lion’s share of Opec’s upstream investments as Saudi Arabia, the UAE and other Gulf oil giants have embarked on development plans to expand their crude output capacity.
The combined capacity of the Gulf’s big five – UAE, Saudi Arabia, Kuwait, Iran and Iraq – stands at around 23 million barrels per day and expansions will add in excess of 10 million bpd in the next 10 to 15 years, according to the London-based Centre for Global Energy Studies. At least $50bn would be spent by these countries on upstream projects in the next five years and the investments are expected to increase sharply in the long term as they are set to dominate the oil market when many other oil supply sources will have run out.
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