The Secretary –general of OPEC, Muhammadu Sanusi Barkindo has applauded the efforts of Dangote group for the construction of the 650 barrels Dangote Refinery.
Unfortunately, he died yesterday few hours after this speech
He gave the commendation at the ongoing Nigeria Oil and Gas Conference ongoing in Abuja, Tuesday.
He said: “Given the global refining squeeze at the moment, the construction of the Dangote refinery in Lagos, with its capacity of around 650,000 barrels per day, is a huge step in the direction of addressing not only Nigeria’s longer-term demand – but significantly improving the capacity outlook of the global down-stream sector. “
He said the urgent need to ensure predictable investment is one reason OPEC joined hands with a number of key non-OPEC oil-producing countries in the Declaration of Cooperation back in December of 2016.
“With our combined expertise and experience to guide us, the participating countries were able to move quickly and decisively to address the widening market crisis at the onset of COVID-19. Rarely in the history of our industry have we witnessed such far-reaching efforts to restore sustainable stability to the global oil market, which in turn has been vital to the global economic recovery?”
He stressed that many African producing countries, both OPEC and non-OPEC members, have been instrumental in supporting the frame-work Declaration of Cooperation from the start.
The OPEC chief stated that these efforts have not gone unnoticed by policymakers, energy analysts and some of the leading stakeholders in the international oil industry. ” We remain optimistic these market-stabilization efforts will extend beyond the Declaration of Cooperation’s current production adjustment schedule, which is due to expire at the end of August, particularly taking into consideration the persistent volatility and enormous uncertainties in the market”
He stated that looking further down the road, OPEC’s most recent World Oil Outlook gives us some perspective on what is to come. “It shows the global oil sector will need cumulative investments of $11.8 trillion in the upstream, midstream and downstream through to 2045 to meet expectations for significant growth in energy demand.”
He said with regard to demand, there is only one direction, and that is up. In fact, OPEC projects that total primary energy demand will expand by a robust 28 % in the period to 2045. Oil, he said is expected to retain the largest share of the energy mix, accounting for just over 28 % of the share in 2045, followed by gas at around 24%. In other words, oil and gas together will continue to supply more than half of the world’s energy needs for many decades.
These hydrocarbons are especially vital to the energy mix in regions like Africa, which will see massive population shifts and economic growth in the coming years.
These developments increase the urgency of eradicating energy poverty.