$14 trillion investment needed by 2045 to meet global energy demands: Opec

Haitham al-Ghais, secretary general of Opec stated no single source alone could cater to the growing global energy demand

Haitham al-Ghais, the secretary general of the Organisation of Petroleum Exporting Countries (Opec), highlighted the need for a substantial investment of $14 trillion by 2045 to meet the escalating energy demand worldwide, according to a report by the Financial Express. Ghais emphasised that the demand for oil is expected to rise significantly, projecting a 23 per cent increase in global energy requirements by 2045 while addressing the India Energy Week in Goa on Tuesday.

Prime Minister Narendra Modi, at the event's inauguration, stated that India's energy demand was set to double by 2045, reaching 38 million barrels per day, compared to the current 19 million barrels per day.

Ghais stated that oil was likely to maintain its position as a crucial energy source despite efforts to triple renewable energy capacity. He emphasised that no single source alone could cater to the growing global energy demand.

The discussions take place amidst various uncertainties, including geopolitical tensions, supply disruptions, and sanctions, all of which have impacted the global oil market.

According to Ghais, investing in oil is crucial to ensure the security and reliability of the global energy supply. India's Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, attributed many past crises to "self-inflicted" and "policy-induced" factors.

While acknowledging the importance of renewable energy, Opec and energy ministers from Guyana and Qatar noted the long road ahead in fully transitioning away from conventional energy sources.

Despite recent fluctuations, oil prices have seen a monthly gain since September, driven partly by concerns over tensions in West Asia and supported by forecasts of oil demand growth in 2024, primarily fueled by Chinese consumption, as earlier reported by Business Standard.

In 2023, the Opec Fund for International Development had expanded its commitments to $1.7 billion across 55 projects globally, focusing on addressing climate change, supporting social and economic resilience, and promoting sustainable growth, with significant investments across various regions.

Earlier this month, the Opec Fund reported strong results on this commitment, delivering 42 per cent of investments to Africa, 20 per cent to West Asia, North Africa, Europe & Central Asia, 20 per cent to Latin America & the Caribbean, and 18 per cent to Asia and the Pacific through public and private sector lending, trade finance and grants operations.