The future of oil and gas industry

What is the outlook of the oil and gas industry today? Overall, we can say that the future of oil and gas is very bright.

On the demand side, all forecasts point to a rise in demand for both oil and gas. Oil demand is expected to rise by an average of 1.4 p% per year, and to make up around 36.5% of the world energy mix by 2030 or about 120 mbpd, according to the OPEC reference scenario. The share of gas, on the other hand, is expected to climb to over 27% cent by 2030, up from over 23 per cent at the moment. Industrialized countries will continue to consume most of the energy, while the bulk of demand growth is expected to come from the Asian developing countries, in particular from the booming economies and populations of China and India, accounting for about 86% of the global demand. As you can see, oil has long been the leading source in the global energy mix, and this is expected to remain the case for the foreseeable future. As a result, NOCs will continue to play a significant role to deliver the additional barrel.

Please allow me to underline that OPEC understands the importance of energy for the social and economic development of the world, in particular for developing countries. We know that societies cannot develop without energy: roads and bridges cannot be built, large-scale agricultural projects cannot be implemented, and the communications infrastructure that is so crucial in enabling citizens to participate and compete, in the global economy cannot be laid without energy. As an organization constituted by developing countries lucky enough to have been endowed with natural resources, we support poorer nations in their quest for realizing their economic growth objectives. Since it was founded in 1976, the OPEC Fund for International Development has extended a total of over US$8.5 billion in development assistance to non-OPEC developing nations.