OAPEC Secretary General, Eng. Jamal Issa Al-Loughani, expected the Arab countries’ contribution to global oil supplies to rise to more than 38% by 2050.
In a speech obtained by the specialized energy platform, he said that future projections indicate that most of the increase in the world’s energy needs for many decades to come will be met by oil and natural gas, with a 53% share in the mix of energy sources consumed globally until 2045.
OAPEC Secretary General added that the contribution of Arab countries to global oil supplies will increase from 9.3% at present to about 38.1% in 2050, and gas supplies will rise from 15.5% to about 19.8% in 2050.
World Energy Forums
Al-Loughani stressed the keenness of the Organization of Arab Petroleum Exporting Countries (OAPEC) to be present in international forums concerned with energy issues, in an effort to enhance cooperation between its member states that are the main producers and exporters of oil and gas in the Arab region and the main Asian countries that consume these two energy sources.
He stressed that India and China are a major driver of Asian demand for oil and natural gas, explaining that ensuring demand will motivate Arab producing and exporting countries to increase their investments in the energy sector, as there must be a guarantee for global energy demand in the medium and long term to justify huge investments in the energy sector. due to its high financial cost.
He pointed out, during his participation in the sixth session of the Arab-Indian Partnership Conference, that the Arab countries possess 54.3% of the world’s proven reserves of crude oil, and they account for 29.3% of the global oil production, and they also account for a share of 30.2% of the total world oil exports.
Engineer Jamal Al-Loughani said that the Arab countries also possess a share of 26.3% of the global proven reserves of natural gas, 15.5% of its production, and a share of 15.7% of the total quantities of natural gas exported globally.
energy demand in India
The Secretary General of OAPEC expects Indian demand for oil to rise from 4.8 million barrels per day at present to 11 million barrels per day in 2045.
He added, in his speech, of which the energy platform obtained a copy: “India’s demand for gas is expected to increase from 64.8 billion cubic meters currently to 210.2 billion cubic meters in 2045.”
Al-Loughani stressed that India will remain dependent on imports to cover its domestic needs of oil and gas, which calls for working together to strengthen the existing cooperation between the two parties from the perspective of energy security in its two parts: the security of supplies for India, and the security of demand for the Arab countries.
Oil and gas investments
OAPEC Secretary General stressed that the most important challenges facing the energy industry are the future global investment requirements for the development of the oil and gas sector, which is expected to reach about $12.1 trillion in 2045.
Al-Loughani expected that the Arab countries – especially the countries of the Gulf Cooperation Council – would acquire the largest share of them, in conjunction with the Arab countries continuing to invest in renewable energy and carbon removal technologies as part of a long-term strategic vision aimed at building a low-carbon future by adopting a cleaner, more balanced and sustainable mix. of energy.
He pointed out that the other important challenge is the disruptions in the supply chains, as the uncertainties surrounding the supply chain are a major problem for the energy sector, which is directly and indirectly linked to the performance of all other sectors.
He said that the continuous fluctuations in costs and uncertainties related to the supply of labor and materials directly threaten the performance of companies operating in the various activities of the energy sector.
He explained that the series of shocks witnessed by the global economy since 2020 caused unprecedented disruptions in supply chains, manifested in the shortage of raw materials, limitations in technological capabilities, limited alternative sources, and the concentration of suppliers for various services in countries experiencing geopolitical tensions.
As a result, the lead time for the delivery of the main equipment increased significantly, and the cost of project insurance increased due to the high potential losses, and this was one of the main reasons for the acceleration of global inflation rates, according to the statements of Eng. Jamal Al-Loughani.
He pointed out that in light of these developments, energy companies are working hard to reduce supply chain risks in order to better secure labor and materials while reducing costs, as sustainable supply chains will help protect the environment, enhance social responsibility and ensure the economic viability of energy companies.
Saudi Supply Chain Initiative
OAPEC Secretary General said that many national energy companies in the Arab countries have, during the past period, entrenched the concept of sustainability in their business strategies, and implemented practices that enhance sustainability in all components of their supply chains, with a focus on reducing the carbon footprint.
Al-Loughani drew attention to the initiative launched by Saudi Arabia in October 2022 on global supply chains, through which the Kingdom aims to attract about $10.64 billion in qualitative, industrial and service investments in global supply chains to the country during the first two years of launching the initiative.
He explained that the initiative also aims to strengthen Saudi Arabia’s position as a major hub and vital link in global supply chains, noting that the initiative will contribute to enabling investors of all sectors to benefit from the country’s resources and capabilities to support and develop chains and build successful investments.
The OAPEC Secretary General stressed that this matter will give greater flexibility to economies and consumers around the world, and ensure the provision and sustainability of supply chain access to all parts of the world with efficiency and high competitive advantages, according to his speech, of which the specialized energy platform obtained a copy.
The initiative also aims to make Saudi Arabia a suitable investment environment for all investors in the field of supply chains through several steps, most notably identifying and developing investment opportunities, presenting them to investors, and establishing a number of special economic zones through which an attractive environment for investments can be created.
He said that there are steps to develop and apply carbon sequestration technologies in Saudi Arabia, which supports the national initiative for global supply chains in one of its main axes to attract green investment opportunities.
Arab-Indian cooperation
OAPEC Secretary General stressed the importance of cooperation between the Arab countries, which have developed a long-term strategic vision aimed at building a low-carbon future by adopting a cleaner, more balanced and sustainable mix of energy, and they possess a large part of the main ingredients to achieve this, in addition to their geographical location that makes them a hub. Essential in the global energy supply chain, and India, which has advanced production techniques and technology on the other hand.
He pointed out that cooperation will achieve integration between the two parties, starting from sustainable supply chains, and ending with the production of clean and sustainable energy, through setting framework agreements, expanding the establishment of joint logistics centers, defining how and where to produce raw materials and equipment, and benefiting from the best available technologies and knowledge transfer.
Leave a Reply