increasing global pressure to slash funding on fossil fuels and refocus on renewable sources of energy, investments in the oil and gas industry has been in a downward spiral. This, along with the impacts of COVID-19, is expected to lead to a crisis which could only be resolves by a global cumulative investment of $12.6 trillion in the three major sectors of the industry, upstream, midstream and downstream, between now and 2045.
Therefore, Dr. Barkindo, a Nigerian national, pointed out that the countries which would be most affected by the predicted situation are those developing nations with no cushion in place to deal with the devastating health and socio-economic outcomes. “The energy security risk that would result from too little investment would heavily impact both producers and consumers. Oil-producing developing countries, like Nigeria, would be particularly hard hit. History has shown that energy insecurity brings with it economic insecurity and geopolitical instability,” the Secretary General said.
Therefore, he urged such countries to focus on economic diversification in response to the crisis.
“All OPEC members, including Nigeria, will have to re-strategise to maintain their positions in the new global energy mix, including focusing on economic diversification. Oil-producing countries, and in particular African countries that rely on oil and gas production for revenues, must create an investment friendly climate.”
