Opec Chief Commends Efforts Of Parties To Doc Under Covid-19 Challenges

OPEC Secretary-General Mohammad Sanusi Barkindo underscored the efforts undertaken by OPEC Member Countries and non-OPEC countries participating in the Declaration of Cooperation (DoC), particularly during the current unprecedented challenges brought about by coronavirus (Covid-19).

In an address to the 2020 edition of the Nigeria Oil and Gas Conference via video link on Wednesday, Barkindo said the 12th OPEC and non OPEC Ministerial Meeting held last Thursday witnessed participating countries reaffirm the group’s commitment to a stable oil market.

The meeting agreed to voluntarily adjust oil production by 0.5 mb/d from 7.7 mb/d to 7.2 mb/d as of January 2021, based on market developments, he recalled, noting that it was also decided to hold the OPEC and non-OPEC Ministerial Meeting on a monthly basis to closely review market conditions.

The Secretary-General noted that multilateralism, cooperation, dialogue, and commitment have become all-important in combatting the Covid-19 pandemic. These principles are also the pillars of the DoC, which was established on December 10, 2016, he stressed.

Barkindo also welcomed recent developments regarding Covid-19 vaccines. “The year 2021 looks brighter, with preparation underway for widespread delivery of Covid-19 vaccines.

Once this process is in motion, the global economy and oil demand are expected to progress in leaps and bounds,” he said. On the global energy mix, the Secretary-General noted, “The petroleum sector will remain the secure base in meeting global energy needs. “We expect oil to retain the largest share of the energy mix throughout the forecast period, providing nearly 28 percent of global requirements in 2045.”

Highlighting the importance of stimulating investment in the oil sector in the interest of future energy security and sustainable supply, he said, “Our current assessments show that upstream capital expenditure could fall by more than 30 percent this year, beyond the losses experienced in 2015 and 2016.” “OPEC’s World Oil Outlook shows that USD 12 trillion will be needed between now and 2045 in the upstream, midstream and downstream. We are alarmed at the pull back of capital from the industry,” Barkindo added.

 

SOURCE : TIMES KUWAIT

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