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Oil and gas market outlook for 2022 remains positive – OPEC SG

OPEC Secretary-General His Excellency Mohammad Barkindo hosted a Leadership Roundtable at Abu Dhabi International Petroleum Exhibition Conference (ADIPEC) on “Collaborating to define the global energy future,” with panellists discussing the global economic recovery and oil market developments, as well as dynamics for the energy transition post-COP26.

The Secretary-General noted that OPEC and its DoC partners have contributed greatly to the oil industry’s ability to face and overcome both the severe oil market downturn of 2014-2016 and the unprecedented oil demand contraction that followed the spread of the COVID-19 pandemic.

Barkindo added that the ‘Declaration of Cooperation’ framework and the mechanisms put in place by Participating Countries to ensure decisions are carried out effectively form a ‘volatility fighting toolkit,’ necessary for confronting market uncertainties.

Barkindo also pointed out that the trilemma of energy affordability, energy security and emissions reductions should be addressed holistically, as focusing on one while ignoring the others can cause unintended consequences such as market distortions and volatility.

Participating in a Ministerial session in ADIPEC themed ‘The New World of Energy’, with Energy Ministers of UAE, Kuwait, Oman and Equatorial Guinea, Mohammad Barkindo, noted that the oil and gas market outlook for 2022 remains positive, however, diligent monitoring is needed to tackle uncertainties that may arise.

The Secretary-General said that as the world economy begins to recover, OPEC and its DoC partners will continue to monitor all market variables, and remain committed to a stable and balanced market in everyone’s interest.

Mohammad Barkindo stressed the need to ensure energy security, for both consumers and producers, and follow a path that enables investments in the energy sources that allow the world to meet future energy demand.

With global energy demand projected to grow by 28% between 2020 and 2045, the Secretary-General stated that investments are necessary to meet global energy demand. He stressed that oil & gas together are expected to supply more than half of the world’s energy needs during this period.

The Secretary-General reiterated that OPEC supports innovation and technological advancement, as well as the need to search for clean and more efficient technologies across all available energy sources to help achieve our emissions-reduced future.

ADIPEC is the world’s most influential meeting place where oil, gas and energy companies and professionals will convene in person, safely and securely, to engage and identify the opportunities that will unlock new value in an evolving energy landscape.