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$11trn needed to invest in oil and gas–- OPEC

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The Organisation of Petroleum Exporting Countries, OPEC, has said that $11 trillion would be needed to invest in oil and gas exploration, production, refining and distribution of petroleum products between now and 2040.

The Secretary-General of OPEC,  Mohammad Barkindo In his presentation at the CSIS Luncheon, Washington DC, USA stressed that the exploration and production spending fell by an enormous 27 per cent in both 2015 and 2016, and only increased by 8 per cent in both 2017 and 2018.

"This only adds to the worry that if our industry is concerned about policies that detrimentally impact oil and investments, with talk of stranded assets and declining values of oil; then we have a potentially dangerous scenario, one that could increase volatility significantly and lead to a future energy shortfall" he said.

“Additionally, as often noted by Bob Dudley, BP’s CEO, we need to emphasize this is not a race to renewables alone; it is a race to lower greenhouse gas emissions. We believe that we need to constantly improve the environmental footprint of all the energies we use" he opined.

According to him,  the environmental challenge is not oil and gases themselves stressing that the problem is the emissions that come from burning them.

Barkindo stated OPEC is a firm believer of solutions found in technologies that reduce and ultimately eliminate these emissions.

He called for coordinated action within the industry, governments and through various research and development platforms such as the Oil & Gas Climate Initiative while highlighting the importance of collectively developing and adoptingtechnologies.

“We need to remind all stakeholders that oil and gas is responsible for much of today’s economic growth, development and prosperity, and a long-term investment in our industry should be viewed as both prudent and profitable. It was the late, great US President, Ronald Reagan, who said: “The future doesn’t belong to the faint-hearted. It belongs to the brave"

“While the times we live in often appear turbulent and the challenges daunting, experience has repeatedly shown us that the enduring principles of cooperation and the audacity to try something new, such as the ‘Declaration of Cooperation’, can bring about some measurable success" he stressed.

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