Oil industry needs almost $11 trillion investment over the period to 2040 in order to meet global supply and demand needs, according to Organization of the Petroleum Exporting Countries' (OPEC) World Oil Outlook 2040 published on Sunday. Global oil upstream investments required over the period 2018–2040 are estimated at $8.3 trillion, OPEC said, adding that most of this would be in non-OPEC countries.
Over the medium-term, non-OPEC countries are estimated to invest on average around $350 billion per annum, while the medium-term number for OPEC member countries is an estimated average of more than $40 billion per annum and then over $60 billion annually in the long-term.
Average annual long-term upstream investment requirements for non-OPEC are forecasted to decline to around $280 billion on the back of declining crude supply, OPEC noted.
- Downstream investments to total almost $1.5 trillion
The total investment volume of the three downstream categories – known projects, required additions and maintenance-capacity replacement – is estimated at just under $1.5 trillion in the period 2018–2040, according to OPEC report.
"Of this, $283 billion is expected to be invested in known medium-term projects, while $306 billion is anticipated to be invested into additions beyond known projects in the long-term," it said.
OPEC projected that the investment requirement for maintenance and replacement will be at around $895 billion for the whole period 2018–2040. Also, including midstream investments of around $1 trillion, in the period up to 2040 the required global oil sector investment is estimated at almost $11 trillion.
