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Authored by Tsvetana Paraskova via OilPrice.com,

The world needs $14 trillion in cumulative investments in the oil sector by 2045 to ensure market stability and avoid energy and economic chaos, OPEC said in its annual World Oil Outlook on Monday.

The annual investments need to be around $610 billion on average, the bulk of which should go to the upstream segment, the cartel said, rebuffing calls for a halt in investments in new supply.

The cumulative investments in the upstream need to be around $11.1 trillion by 2045 or an average of $480 billion per year. Downstream and midstream requirements are estimated at a total of $1.7 trillion and $1.2 trillion by 2045, respectively.

This year, upstream investment is set to rise by 13%, to $360 billion, but this will only bring capital expenditure back to pre-pandemic levels.

OPEC Secretary General Haitham Al Ghais commented in the foreword to the report,

“History is replete with numerous examples of turmoil that should serve as a warning for what occurs when policymakers fail to acknowledge energy’s interwoven complexities,” Al Ghais noted.