OPEC predicts energy infrastructure boom

OPEC predicts energy infrastructure boom

Oil producers’ cartel OPEC predicts a worldwide oil related infrastructure investment boom of $7.5 trillion (£4.6) to 2035 as oil demand continues to rise.

 

OPEC’s 2013 World Oil Outlook increases its forecast for long term oil demand, largely driven by rapid economic growth in Asia, which it says means rising demand for infrastructure from production plants and refineries to pipelines.

 

OPEC, a group of 12 major oil producing nations that produces about one third of world oil supply, says it will have to produce 2.6M barrels a day (b/d) more crude oil than it had previously estimated, which raises its long term production estimate to 37M b/d by 2035.

 

Total world demand will grow by 20M b/d to 108M b/d by 2035, OPEC says. Total global demand for energy will grow by 52% over the same period. A major reason for the growth forecast is said to be increased car ownership in China. OPEC had previously thought that poor infrastructure in China would be a constraint, but has revised this view following recent huge infrastructure investments throughout China.

 

Some 64% of the forecast rise in car ownership will come from Asia and there will be more cars on the road in developing countries than in all of the Organisation for Economic Cooperation and development countries – the developed world.   

 

OPEC dismisses fears that oil stocks will run short. Secretary General Abdalla El-Badri says in the report that there is no shortage of oil and ‘resources are plentiful’. He added: “Increasing global oil demand is supported by an expanding diversity of supply sources: crude oil, including tight oil, NGL’s, oil sands, gas-and-coal-to-liquids, and biofuels.”

 

Photo: Martin Gita

Please rate

Comments 

Ctrl + Enter

Most Read

80% of IT projects in public sector delayed due to IR35

80% of IT projects in public sector delayed due to IR35

The vast majority of UK government IT projects are suffering severe delays due to freelancers quitting over the IR35 tax clampdown. In April, the government shifted responsibility for compliance with the IR35 legislation from the individual contractor to the public body or recruitment agency. The

Innogy and Statkraft win contract at 860 MW UK wind power plant

Innogy and Statkraft win contract at 860 MW UK wind power plant

Norway’s state-controlled hydropower company Statkraft and Germany-based energy company Innogy have won a tender in the Contract for Difference (CFD) auction in the UK for their 860 MW Triton Knoll offshore wind power project.The wind farm off the coast of

Is there a post-Brexit salary rise? It looks like it...

Is there a post-Brexit salary rise? It looks like it...

Following the Brexit vote in June last year, many experts predicted that markets would continue to fall leaving salaries stagnating and even falling in some sectors. Data shows the pace at which new jobs are being created is still slower than in 2014, with economic growth affected by the

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.