OPEC Secretary General Mohammad Barkindo. File photo.
On Tuesday, July 5, the secretary general of the Organization of Petroleum Exporting Countries (OPEC), Mohammad Barkindo, indicated that world oil supply shortages could be alleviated by allowing additional crude to flow from Iran and Venezuela.
At an energy conference held in Nigeria, Barkindo stated that resources could be unlocked and capacity strengthened by allowing Iranian and Venezuelan oil to return to the world market.
Barkindo added that the oil and gas industry has been affected by a lack of investment for many years, amid a trend in some countries to divest from hydrocarbons, a situation that has increased tensions in the energy sector.
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According to Barkindo, despite a push to limit global warming, demand for crude is growing, but investment in production capacity has fallen. Meanwhile, prices are soaring.
The sanctions imposed by the West on Russia, following its special military operation in Ukraine, which began on February 24, has had further detrimental effects on the world oil markets.
Barkindo forecast that global primary crude demand will increase all the way to 2045, while refining capacity in Organization for Economic Co-operation and Development (OECD) countries shrunk 3.3% in 2021.
“Our industry is now facing enormous challenges on multiple fronts, and these threaten our investment potential now and in the long term,” stressed Barkindo.
Translation: Orinoco Tribune
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