The secretary-general of oil exporting countries said in a speech at the Calgary Global Energy Show on Tuesday that global oil demand has not reached the peak of the horizon and will require trillions of dollars in investment to meet demand in the coming decades.
Haitham Al-Ghais said that from now until 2050, tier 1 energy demand is forecast to grow by 24%, exceeding 120 million barrels per day.
He added that this would require $17.4 trillion in investment over that time.
Secretary-General OPEC predicts that global energy demand will grow by 24% by 2050.
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“OPEC's forecasts are not ideologically based. They are based on data and data analysis and clearly show that the components of the energy mixture of oil will be the one that is still around 30% by 2050,” Al-Ghais said.
“In short, ladies and gentlemen, there is no peak in oil demand on the horizon.”
Al-Ghais criticized the International Energy Agency for sending mixed signals to the industry in recent years – first saying that oil should be the cornerstone of global energy security, then saying that no oil investment should be made in the zero-zero scenario, and then back to the early view.
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“If it is to remain credible and relevant, institutions that are guiding policies for global energy affairs should not reverse every few years,” he said.
He said companies need long-term projects identified, and insufficient investment in the oil and gas industry is a “dangerous matter.”
“It undermines energy security and market stability and leads to increased volatility around the world, which affects producers, but not only affects producers – more importantly, it actually affects consumers and of course the broader global economy.”
Al-Ghais said OPEC “puts climate change very, very seriously” but expressed concern about the net zero targets he called “unrealistic”, “fixed on deadlines” and “disconnected from reality”.
“We welcome recent actions towards practical energy realities that recognize that we face emission challenges, not energy challenges,” Al-Ghais noted that OPEC members are signatories to the Paris climate agreement and recognize the important role of renewable energy and carbon capture.
Secretary-General OPEC said his organization admires Alberta's achievements as an energy producer.
“So, Canada has become a major global — I emphasize the term global — oil suppliers,” he said.
Lisa Baiton, president and CEO of the Canadian Petroleum Producers Association, told the meeting that the market began to begin, believing that the “energy transition” was not going on, but “energy increases.”
“We’re seeing demand for energy just an exponential growth,” she said.
“Great renewable energy is growing, but it will be above the growth of conventional oil and gas to meet global demand.”
Jon McKenzie, president and CEO of Canadian oil giant Cenovus Energy Inc., told reporters off the conference that he agreed that more industry investment was needed, while industry players needed to meet the challenge.
“It’s a very good industry that can promote productivity and beat costs.”
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