The oil industry the world over will need an investment of $6 trillion by 2030 for development of the sector.
“About 80 per cent of this investment will be needed for upstream exploration and production sector, while 64 million barrels per day will need to be developed to meet demand while offsetting declines in the existing fields,” said Abdallah S Jumah, president & chief executive officer of the Saudi Aramco, Saudi Arabia’s largest oil company.
While chairing a session on role of energy here, Reliance Industries chairman Mukesh Ambani said that the Reliance’s second refinery will start production soon. This was in an obvious reference to media reports that the construction of the second refinery at Jamnagar could be delayed due to an economic slow down.
Jumah said sizeable investments are essential to offset the natural decline in oil fields through new production capacity.
He said in the petroleum value chain investment is also required in areas of refining, shipping and transportation. “A major factor here in that equation is taking shape right here in India, given that this country’s petroleum sector has invested heavily — and in my view, wisely — in developing substantial new capacity,” Jumah said.
He also emphasised the need for sustained investment in research and technology development.
According to Jumah the world petroleum requirement will touch 106 million barrels per day by 2030 from 85 million barrels per day now.
Regarding Saudi Arabia’s refining capacity, Jumah said “We refine 11 million barrels per day now and have the capacity of refining 12 million barrels per day but we will not go in for that keeping in mind the falling prices of crude the world over.
He said “Oil already accounts for more than 35 per cent of India’s primary energy consumption and is set to grow both in absolute and percentage terms.”