OPEC Secretary General Haitham Al Ghais said on Wednesday that the world needs to invest more in oil and gas to meet rising energy demand, predicting that oil will still make up around 30% of the global energy mix by 2050. Speaking at the Russian Energy Week conference in Moscow, he noted that global energy demand is expected to grow 23% by mid-century due to economic expansion, urbanisation, and population growth.
Al Ghais emphasised that despite global efforts toward clean energy, fossil fuels remain essential. “The world will need much more energy than it is consuming today,” he said, adding that OPEC’s approach is based on “technical, sound, detailed analysis” rather than political noise.
Why It Matters
The comments reflect OPEC’s diverging outlook from Western forecasts. The International Energy Agency (IEA) predicts oil demand will peak in 2029, with a possible 4 million barrels-per-day surplus by 2026. In contrast, OPEC sees oil remaining vital for decades, warning that underinvestment could trigger future energy shortages and price volatility.
The tension between ensuring energy security and meeting climate goals is becoming sharper as global economies push for renewables while still depending on stable oil supplies.
The OPEC+ alliance including OPEC members, Russia, and other partners has begun unwinding production cuts earlier than expected, adding more crude to the market. This move has contributed to softer oil prices and concerns of oversupply.
Major energy consumers such as China, India, and the European Union are closely watching OPEC’s policy shifts, as price fluctuations could directly affect their import costs and inflation levels.
What’s Next
Analysts expect OPEC+ to adjust output more cautiously in the coming months to balance prices and maintain cohesion among members. The organisation’s next ministerial meeting will likely focus on investment incentives and supply management strategies amid ongoing geopolitical uncertainties.
If the projected demand increase materialises, the industry may see renewed investment flows into upstream projects, especially in the Middle East and Africa potentially delaying the pace of the global energy transition.
With information from Reuters.
