Eco
The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, affirmed that ensuring the stability and balance of global oil markets remains a paramount strategic priority for the organization, emphasizing that OPEC's policies are not aimed at directing oil prices or determining their trajectory. Al Ghais highlighted the pivotal role played by the OPEC+ alliance in safeguarding the global economy from sharp fluctuations in energy supplies, expressing strong confidence in the decisions taken by the alliance over recent years to ensure market stability. Addressing recent challenges, Al Ghais clarified that some OPEC member states, in coordination with regional and international partners, have adopted alternative logistical routes to manage supply constraints arising from geopolitical tensions in the Strait of Hormuz. This measure aims to ensure the continuous flow of vital energy supplies to global markets. He described recent developments related to the security of maritime passages in the Middle East as "temporary," asserting that member states have demonstrated exceptional resilience and unwavering commitment as reliable energy suppliers. He further stressed that diplomacy remains the optimal path to achieving lasting and stable solutions. The OPEC Secretary General then warned against the serious repercussions of underinvestment in the oil sector, pointing out that meeting anticipated growth in global demand will require massive cumulative oil investments totaling approximately $17.7 trillion by 2050. These projections, from the organization's "World Oil Outlook 2050" report, indicate that global oil demand is expected to rise to about 124 million barrels per day by mid-century. This increase is attributed to several key factors, including a global population increase of approximately 1.4 billion people, a doubling of the global economy's size, and ongoing rapid urbanization. Al Ghais also called for a re-evaluation of the "energy transition" concept, proposing "energy additions" instead. His suggestion comes amidst record levels of consumption for coal, oil, gas, and renewable energy alike during 2025, underscoring the potential for different energy sources to integrate rather than compete. Concluding his remarks, Al Ghais noted that approximately 655 million people worldwide still lack access to electricity, while nearly two billion people suffer from a lack of safe cooking fuel. He stressed that addressing this enormous gap in energy provision necessitates adopting a comprehensive approach that considers all available energy sources, technologies, and the diverse needs of populations.
