• Monday, July 15, 2024
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Underinvestment, a major issue for global oil, gas industry since 2015 – GECF

Underinvestment, a major issue for global oil, gas industry since 2015 – GECF

Since 2015, underinvestment has remained one of the key issues for the global oil and gas industry, the secretary general of the Gas Exporting Countries Forum (GECF) said.
Mohamed Hamel made this known during the Organization of the Petroleum Exporting Countries (OPEC) and GECF third high-level meeting Energy Dialogue, at the OPEC secretariat, in Vienna, Austria.
The Meeting was co-chaired by Haitham Al Ghais, OPEC Secretary General and Mohamed Hamel.
In Nigeria’s context, divestments from onshore and shallow water fields by multinational oil companies have crimped the country’s oil output.
The bulk of the country’s oil output which used to come from onshore fields has now shifted to deep-water fields, which vandals cannot easily sabotage.

In August this year, Austin Avuru, the executive chairman and founder, AA holdings Limited identified increasing divestment by multinationals by IOCs as reasons for Nigeria’s struggling oil output.

Furthermore, Haitham in his opening address said meeting the world’s growing demand for energy; correcting public misperceptions about the oil and gas industry; reducing energy poverty: none of these issues can be tackled by any one organization acting on its own. They require cooperation, openness and dialogue.

He said, “Our cooperation with the GECF is an utmost priority for OPEC. It is consistent with the ethos of all our energy dialogues, as all parties benefit from constructive dialogue, open and transparent use of data and the exchange of best practices.”

Hamel added, “both our organizations also share a lot of ground on the environmental agenda”.

The Secretaries General emphasized that the oil and gas industry has an important role to play in a just and inclusive energy transition and supports the need to reduce emissions, bolster efficiency and embrace innovation.

“Events in 2022 have underscored the importance of ensuring that there is an investment-friendly climate for the industry,” according to a statement by GECF.

Read also: Global energy mix: Natural gas share to rise 27% by 2050

Furthermore, the meeting highlighted the importance of data and knowledge exchange, which contributes to improved accuracy of data flow.

Going forward, the two Organizations will intensify participation in yearly data and statistically focused meetings. They will continue to engage under the Joint Organizations Data Initiative (JODI).

Furthermore, the meeting resolved to continue and strengthen cooperation; increase knowledge sharing by participating in each other’s events; and work together on environmental matters in the build-up to the 27th Conference of the Parties of the UNFCCC (COP27) to be held in Sharm El-Sheikh, Egypt.

Also, It noted the progress that has been achieved since the signing of the Memorandum of Understanding between OPEC and the GECF in October 2019.

“The two Organizations have intensified cooperation across a range of areas over the last three years,” the statement by GECF said.

“For example, both organizations now contribute to each other’s flagship publications — the World Oil Outlook (WOO) and Global Gas Outlook (GGO) — on a reciprocal basis.”
In addition, the leaders agreed to hold the next High-Level Meeting of the OPEC-GECF Energy Dialogue in 2023.

OPEC and GECF have common Member Countries and shared values. Algeria, Equatorial Guinea, IR Iran, Libya, Nigeria, and Venezuela are members of both. OPEC Member Countries Angola, Iraq, and the United Arab Emirates are GECF Observers.