CNBC tweeted on Wednesday a video of Minister of Industry and Advanced Technology Sultan Al Jaber stating that “after almost a decade of underinvestment in our industry, the world has sleepwalked into a supply crunch. It is time to wake up.”
According to Adnoc's managing director and group chief executive, the global oil and gas industry requires more than $600 billion in yearly investment to keep up with expanding demand for energy even as the world transitions to cleaner forms of energy.
“We cannot just flick a switch” he said to the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
He also explained that the demand has surpassed supply as economies recover from the Covid-19 pandemic, at the fastest rate in two years. The oil and gas industry will have to invest over $600 billion every year through 2030 in order to keep up with expected demand.
By 2030, the state oil producer wants to invest much more in hydrocarbons and raise its output capacity to 5 million barrels per day.
Oil prices are currently at multi-year highs, bolstered by the global economy's recovery following extended periods of lockdown due to Covid-19.
Accordingly, Al Jaber backed the call for higher oil and gas production, stressing that at the same time, we are always coming up with new ways to minimize our carbon intensity.