Global Gas Output At 16.7bn m³/d by 2040: Opec

Global gas-related investment requirements are expected to reach $6 trillion between now and 2040, Opec secretary-general Mohammad Barkindo said November 7. The output is also expected to increase from 9.91bn m³/d in 2015 to 16.7bn m³/d then, and oil and gas are still expected to contribute 53% to the global energy mix by 2040.

According to him, the estimated oil-related investment needs also stands at $10 trillion. “Global oil demand would also increase from around 93mn b/d in 2015 to over 109mn b/d by 2040, Barkindo said during the 2016 Abu Dhabi International Petroleum Exhibition and Conference.

Touching upon the significant cut in oil and gas investments after collapsing oil prices in mid-2014, he said that the situation that has evolved over the past two years or so, is putting the future at risk given the dramatic drop off in investments. “Global oil and gas exploration and production spending fell by around 26% in 2015 and a further 22% drop is anticipated this year. Combined, this equates to above $300bn.

Mohammad Barkindo (L) and predecessor HE Abdalla Salem El-Badri (Credit: Opec)

Barkindo said that if market and financial conditions do not improve, there is the distinct possibility of a third year of investment cutbacks. To put this into some oil industry context, there has never been a consecutive three-year decline in its history:

“This is a major concern for an industry that needs regular and predictable investments to provide the necessary supply in the medium- and longer terms”.