OPEC+ calls for increased investment in the oil industry

Saudi Arabia, one of the organisation’s most prominent members, believes that the current energy crisis is largely the result of declining investment in hydrocarbons.

Russia’s invasion of Ukraine has put the continent’s energy security at risk, affecting the global economy as well. As a result of the war, the price of oil and gas, as well as their derivatives, have risen significantly, leading many governments to consider energy alternatives that can meet these new challenges, such as renewable energies. At a time when environmentalism and sustainability are gaining momentum, businesses and governments see clean energy as a good option to address the energy crisis caused by rising fuel prices, largely as a result of the war in Ukraine.

However, these attempts to boost renewables clash with the plans of the Organisation of Petroleum Exporting Countries (OPEC+), which is calling for increased investment in hydrocarbons. Haitham al-Ghais, secretary general of OPEC+, urged countries and companies to invest more in the oil industry to meet “the world’s future energy needs”, as reported by Bloomberg.

Al-Ghais stressed that climate policies must be more “balanced and fair”. Furthermore, according to the Kuwaiti, OPEC+ “remains committed to the stability of world oil markets”, but “must work for an orderly and comprehensive energy transition that helps ensure energy security for all”

Since the outbreak of the war in Ukraine, OPEC+ – an organisation of which Russia is a member – has been embroiled in several controversies over decisions related to oil production. In October, the energy cartel agreed to recall production by 2 million barrels per day, despite high prices and calls from the West to increase output.

Al-Ghais’ statements came at the Egypt Petrol Show (EGYPS), a summit held in Cairo this week under the theme “North Africa and the Mediterranean: supporting sustainable global energy supply and demand”, where decarbonisation, the transition to renewable energy and energy security were discussed.