A shortage of supply in the oil market in the coming years is more likely than a potential decrease in the demand for mineral resources, UAE Energy Minister Suhail Al Mazrouei said on Thursday
VIENNA (Pakistan Point News / Sputnik - 06th July, 2023) A shortage of supply in the oil market in the coming years is more likely than a potential decrease in the demand for mineral resources, UAE Energy Minister Suhail Al Mazrouei said on Thursday.
When asked to comment on the current situation in the oil market during the ministerial session�of the OPEC International Seminar in Vienna, the minister said that he feared there would be a shortage of supplies rather than a decrease of customers' needs or demand.
The entire world consumes about 100 million barrels of oil per day, so OPEC has to replace 8 million barrels annually just to remain at the same level, which requires investments, he said. The situation is getting worse since oil reserves are aging, the minister said, adding that the replacement level is already 40% in some countries, for instance, in the US. Therefore, if the investment is less than 40%, it will result in losses, he said.� � �
Al Mazrouei also said that there was no evidence that the demand for oil would decrease in the future. He called on the seminar attendees to make effort to produce the required volumes.
The minister added that the lack of investment had resulted in the loss of 3 million barrels. He emphasized the importance of investments, especially in the African countries and in the OPEC countries that are interested in diversifying their economy.
The 8th two-day OPEC International Seminar is currently taking place in Vienna. The event brought together ministers of oil-producing countries and heads of global energy companies.
