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OPEC: Oil and gas will lead the global energy mix with a 50% share by 2045
31/01/2021
The Organization of the Petroleum Exporting Countries (OPEC) stressed the main role of investment in addressing future energy demand and securing future supplies, noting that the global oil market requires cumulative investments of $ 12.6 trillion in exploration, production, distribution, and refining operations until 2045.
It noted that oil and gas will continue to form an integral part of the global energy mix with a combined share of 50 percent in 2045, adding that renewables are expected to provide more than 20 percent by then.
The state of volatility in crude oil prices continued during the past week due to the repercussions of the Corona pandemic and the pressures resulting from the difficulties of deploying vaccines in exchange for the continued closure due to the rapid spread of infections with new strains of the epidemic.
Brent crude futures for March delivery rose 0.6 percent, while US West Texas Intermediate crude futures fell 0.3 percent.

The "OPEC +" group is preparing to review market fundamentals and developments in supply and demand data at its second monthly meeting in early February, with the expectation of maintaining the current level of cuts, as the level of supplies has been fixed at January with voluntary cuts made by Saudi Arabia by about one million barrels per day for the next two months.
Returning to the "OPEC" report, the report stressed the importance of multilateralism in guiding the global energy transition, pointing out that multilateralism and energy transfer are among the main issues of great importance and central to OPEC.
The report quoted Mohamed Barkindo, Secretary-General of the Organization, as saying that the principles of cooperation, pluralism, and dialogue have focused on the mission and objectives of "OPEC" since its establishment in Baghdad 60 years ago, as it focused on expanding dialogue and cooperation continuously.
He noted the continuous expansion of the organization's dialogue with partners, including oil-producing and consuming countries, international organizations, and a large number of other stakeholders in the industry, including the European Union, India, China, the Russian Federation, the International Energy Forum (IEF), the International Energy Agency (IEA), and the Gas Exporting Countries Forum (GECF). , The G20, the IMF, the World Bank, and several US energy industry stakeholders.
He pointed to Barkindo's assertion that these relations were particularly vital in 2020 in the face of the tremendous effects of the Corona epidemic, pointing out that the "Declaration of Cooperation" constitutes a milestone and unique in the history of the organization and the plurality in the oil sector, as it brought together 23 oil-producing countries to help restore balance to Market, and achieving sustainable stability for the benefit of producers and consumers alike.

Barkindo stressed that the effective, flexible and comprehensive multilateral approach followed by the declaration of cooperation has proven reliable and successful during the Corona pandemic, noting that the future requires the need to form pluralism and transfer energy into a form that serves every person on the planet, adding that the stability of energy and oil markets Is vital in this regard.
The report pointed to the potential of technologies in overcoming critical global issues such as climate change, pointing out that we will need a very wide range of emission removal technologies to address climate change, explaining that the use and storage of carbon and a circular carbon economy can improve overall environmental performance.
He stressed that working together through a multilateral approach enables us to build a future fit for future generations and a future in which no one is left behind.
He pointed out that the oil sector may have been more affected last year than at any time before the epidemic, which reached its climax in the events of "Black Monday" on April 20, 2020, which is an unprecedented day in the history of the industry.
However, the report added that - as the member states of "OPEC" and "the declaration of cooperation" showed - this was not a time of despair, but rather a catalyst for concerted efforts and the launch of a stronger future partnership, noting that the ministers discussed at the 180th meeting of "OPEC" last December. And the next 12th meeting of the "OPEC +" alliance, how can producers continue to act as a beacon for the industry, which has been greatly affected by the pandemic.
He stated that the movements of the producers were necessary to support the industry, contribute to reviving the market’s fortunes and enhance the fundamentals and expectations of the oil market for the current year 2021, stressing the commitment of the member states in declaring cooperation to decide to adjust oil supplies appropriate to the market’s needs, pointing out that at the beginning of the new year it was agreed to add 500 thousand barrels per day for the oil supply, and the level of reduction was amended from 7.7 million barrels per day to 7.2 million barrels per day.
The report pointed to the importance of producers' procedures to follow market developments, especially in light of the agreement of OPEC + member states to hold monthly ministerial meetings for OPEC and outside it, starting from January 2021, to assess market conditions and decide on production adjustments, and compensation was extended until the end of March 2021, indicating that Saudi Arabia has more efforts to enhance its leadership role in the market, and in supporting the OPEC + producer alliance.
He indicated that the first monthly meeting of the ministers of the "OPEC +" producing countries discussed in detail the events of 2020 and the terrible impact of the Corona epidemic on the global economy and markets, pointing to the wide and surprising positive impact of Saudi Arabia's decision to make an additional unilateral adjustment by reducing production by one million barrels per day on Over the next two months of February and March.
The report pointed to Russia's appreciation of the Saudi action in reducing production, pointing to the statement by Alexander Novak, Deputy Prime Minister of Russia that the voluntary adjustment of Saudi production is a wonderful gift for the new year and supports the entire industry and is a major contribution to accelerating the pace of withdrawal of stocks in a more consistent manner, which will help stabilize the market Faster.
On the other hand, concerning prices at the end of last week, US crude prices slightly decreased at settlement after trading within a narrow range on Friday, as investors are concerned about the continuing global pandemic and the slow distribution of vaccines.
Brent crude contracts, the most active in the world, closed lower, due to concerns about the distribution of vaccines and the effectiveness of one of them.
Brent crude futures for March delivery were settled 36 cents, or 0.6 percent, to $ 55.88 a barrel, and the Brent March delivery contract expired, and the most active April contract was settled on a decline. Six cents at $ 55.04 a barrel.
US West Texas Intermediate crude futures fell 14 cents, or 0.3 percent, to $ 52.20 a barrel, and a Reuters poll concluded that oil prices are expected to hover around their current levels for a large period of 2021 before the recovery gains momentum with the trend. To the end of the year.
Saudi Arabia is scheduled to cut production by one million barrels per day in February (March), and improvement in January (January) the compliance of the Organization of the Petroleum Exporting Countries and its allies, within the framework of the "OPEC +" group, to production restrictions.

OPEC: Oil and gas will lead the global energy mix with a 50% share by 2045