The secretary general of the Organization of Petroleum Exporting Countries (OPEC), Mohammad Barkindo, indicated today that the supply shortage could be alleviated by allowing additional flows from Iran and Venezuela, limited by sanctions, reported Prensa Latina.
At an energy conference in Nigeria, Barkindo said resources could be unlocked and capacity strengthened allowing Iranian and Venezuelan oil to return to the market.
Barkindo added that the oil and gas industry is affected by years of lack of investment amid a trend in some countries to divest of hydrocarbons, a situation that increases tension in the sector.
As they try to limit global warming, he said, demand for crude is growing but investment in production capacity is falling and prices are soaring.
A scenario accompanied by the sanctions imposed on Russia by the West after the military operation in Ukraine on February 24, which further affects the oil markets, he said.
Barkindo forecast that global primary crude oil demand will increase until 2045, while refining capacity in Organization for Economic Co-operation and Development countries will shrink 3.3 percent in 2021.
“Our industry is now facing enormous challenges on multiple fronts and these threaten our investment potential now and in the long term,” he stressed.
