The global oil market will require $14 trillion in investments over the next 20 years if oil-producing nations hope to be able to fulfill global energy demands through 2045, OPEC’s Secretary General Haitham al-Ghais said on Tuesday. According to the Secretary-General who spoke at India Energy Week in Goa, oil demand “will continue to rise and there is a need to ensure that supply is maintained.”
While a shortage of oil will be bad of most of society, it will be a boon for investors because of price increases. With $14 trillion of capital needed it does not appear that globally, there is appetite for capital spend from the oi majors. The returns are to compelling at this time. Given that America is the swing producer & oil production being supplement or complement with Natural gas, Oil companies has more of a incentive to back policies that restrict supply of oil for an higher price.
While a shortage of oil will be bad of most of society, it will be a boon for investors because of price increases. With $14 trillion of capital needed it does not appear that globally, there is appetite for capital spend from the oi majors. The returns are to compelling at this time. Given that America is the swing producer & oil production being supplement or complement with Natural gas, Oil companies has more of a incentive to back policies that restrict supply of oil for an higher price.
We need more leaders understanding the importance of energy sanity.