Head of OPEC warns of a ‘dangerous’ that a lack of investment in the oil industry posed a danger to global energy security and could send crude prices to $100

OPEC secretary-general Haitham Al Ghais told Becky Anderson at the ADIPEC energy conference in Abu Dhabi that a $12 trillion investment is needed in the oil industry between now and 2045 to prevent a spike in energy prices.

According to him, underinvestment in the oil sector is “dangerous.”

In fact, we undermine energy security by underinvesting… If we don’t make this investment, I believe prices and volatility will increase as demand grows,” he said.

Last week, Brent crude oil traded near $97 a barrel, its highest level since last November, mainly because Saudi Arabia and Russia extended production cuts.

Some analysts have suggested that oil could reach $100 a barrel, but Al Ghais said OPEC did not forecast prices, but “the factors that may lead to this number have been around for quite some time — most notably, the underinvestment we have seen in oil.”

Getting this right is essential for the world, he said. “By underinvesting, we are actually endangering energy security – between now and 2045, the world’s oil industry will need at least $12 trillion in investment.”

According to Al Ghais, the world’s future energy needs cannot be met by renewables alone or hydrogen alone, due to population and economic growth.

In addition, he called for the development of stable, affordable, reliable energy sources, not intermittent sources.

Just a week ago, the International Energy Agency predicted that global demand for oil, natural gas, and coal would peak by 2030.