OPEC launched its tenth edition of the World Oil Outlook (WOO) 2016 report at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2016 that underlines the increasingly complex nature of the oil industry, both in the upstream and downstream.
In introducing the publication, His Excellency Mohammad Sanusi Barkindo said: “The market adjustments that have taken place since the price drop that began in mid-2014; the continued interdependence of all nations; how security of supply and security of demand are very much interlinked; and the need to better understand the market drivers, challenges, uncertainties, as well as opportunities, we face.”
Figures from OPEC’s 2016 World Oil Outlook report show that global energy demand will increase by 40 per cent by 2040, with oil and gas accounting for a substantial share of this rise. From the perspective of oil, OPEC estimates demand to reach over 109 million barrels of oil a day by 2040, a healthy increase of over 16 million barrels a day. The main driver of this growth is the road transportation sector in developing countries.
HE Barkindo added that he was proud to see the publication launched in an OPEC Member Country for the first time, and thanked the Government of the United Arab Emirates, its Energy Ministry, the organisers of ADIPEC, and all the OPEC Secretariat staff involved in putting together the WOO 2016.
"Since the publication of the 2015 edition in December last year, the oil market has shown some signs that fundamentals are rebalancing. However, high inventory levels continue to be a major concern," H.E. Barkindo stated.
An estimated US$10 trillion in investments are required by 2040, according to the World Oil Outlook, driven by the continuous growth of the global economy, which will more than double in size during the same period. That, combined with a growing world population that is set to reach over 9 billion, will create a high demand for modern energy services to fuel socio-economic development. It estimated that about 2.7 billion people still rely on biomass for their basic needs, while some 1.3 billion have no access to electricity.
“Stability is necessary in order for us to plan for the future with relative certainty,” concluded H.E. Barkindo. “We need stability for investments and for future petroleum output expansion to flourish. We need stability for economies around the world to grow and especially to provide access to modern energy services for those currently without them. And we need stability to give producers a fair return from the exploitation of their exhaustible natural resources. Without question, stability is the key to a sustainable global energy future for us all.”