OPEC chief says blame policymakers, lawmakers for oil price rises
OPEC’s new Secretary General says that policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC. A lack of investment in the oil and gas sector following a price slump sparked by COVID-19 has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption. Oil and gas investment is up 10% from last year but remains well below 2019 levels, according to the International Energy Agency. The OPEC Secretary stated, “We are not saying that the world will live on fossil fuels forever … but by saying we’re not going to invest in fossil fuels … you have to move from point A to point B overnight”. OPEC exists to ensure the world gets enough oil, but “it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing”.