OPEC: $17.4 Trillion Upstream Investment Needed by 2050 to Avoid Major Oil Shortfall
The Organisation of the Petroleum Exporting Countries (OPEC) has warned that the world could face a massive oil supply shortfall of 23 million barrels per day (bpd) by 2030 if upstream investment halts. According to OPEC’s research, continued investment in oil exploration and production is critical to meeting global energy demand in the coming decades.
Speaking at the 24th Nigeria Oil and Gas (NOG) Energy Week Conference in Abuja, OPEC Secretary-General Haitham Al Ghais highlighted that a total of $17.4 trillion in cumulative oil-related investments is required globally by 2050.
Al Ghais emphasized that meeting future energy needs will require a significant rise in investment across all energy sources. OPEC's World Oil Outlook projects a 23% increase in global primary energy demand by 2050, driven by demographic growth, rapid urbanization, and economic development.
“The global population is projected to grow from 8.2 billion in 2024 to nearly 9.7 billion by 2050,” he noted, adding that this growth will be concentrated in non-OECD countries. Additionally, around 1.9 billion people are expected to move to urban areas by 2050 — equivalent to adding 111 cities the size of Lagos or 452 cities the size of Abuja.
Al Ghais pointed out that these developments will put pressure on energy infrastructure, but also present opportunities to tackle energy poverty. An estimated 675 million people still lack access to electricity, while 2.3 billion lack clean cooking fuels.
According to OPEC, oil is expected to maintain the largest share of the global energy mix by 2050 at nearly 30%, with oil and gas together accounting for more than 50% of energy consumption through 2050.
The Secretary-General stressed the importance of allowing developing nations to harness their natural resources to drive economic growth. He also reiterated OPEC’s commitment to market stability through the Declaration of Cooperation and the Charter of Cooperation.
Al Ghais further highlighted the role of technological innovation in enhancing efficiency and sustainability across the oil value chain, noting that thousands of industry-related patents are issued annually.
The NOG Energy Week Conference was held under the theme: “Accelerating Global Energy Progress Through Investment, Partnerships and Innovation.”
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