The long-term stability of oil supplies is in question due to underinvestment, market participants depend on the opportunistic interests of certain groups of investors, said the head of Rosneft Igor Sechin. According to Mr. Sechin, in order to maintain production at the current level until 2040, “it is required to invest about $ 17 trillion in the global oil and gas industry, which will amount to about a third of all world investments in energy.”
“The long-term stability of oil supplies is at risk due to underinvestment. This is connected both with the demands of various “stakeholders” to completely abandon investments in the oil and gas sector, and with the desire of the majors to increase shareholder value and shareholder income through the growth of dividends and share buybacks. Companies have become dependent on the opportunistic interests of certain groups of investors. For example, some of them are forced to implement only those projects that will yield returns in the coming years, and refuse to search for and explore new reserves, ”said Mr. Sechin at the energy panel“ Transformation of World Energy ”at the St. Petersburg International Economic Forum (SPIEF) …
According to Igor Sechin, because of this, in recent years, an increase in oil and gas reserves has been at historic lows, and a shortage of resources is also visible. “This trend can become the“ new norm ”for the world majors and lead to the depletion of the resource base. The world runs the risk of facing an acute shortage of oil and gas, ”said the head of Rosneft.
Mr. Sechin called the current situation on the metals market a consequence of the earlier decisions. “The largest producers of iron ore underestimated the demand, and the resulting underinvestment in the industry has led to a deficit that is now affecting the entire world. In 2020, prices for iron ore began to rise, and now they have almost doubled, ”he said.
Earlier today, on June 5, the head of LUKOIL, Vagit Alekperov, said that the oil market could recover from the crisis that arose amid the coronavirus pandemic by the spring of 2022. According to him, in the future, fluctuations in oil prices may be in the range “from zero to infinity.”
Following the meeting on June 1, the largest oil-producing countries confirmed their adherence to the previous agreements, under which OPEC + will increase production by 2 million barrels per day in May-July. Mr. Novak expressed hope that by the end of the year the oil price will exceed $ 60 per barrel.
Details – in the material of “Kommersant” “OPEC + does not want to change anything.”