OPEC expects oil demand for 2022 to exceed pre-pandemic levels

OPEC expects oil demand for 2022 to exceed pre-pandemic levels
OPEC expects oil demand for 2022 to exceed pre-pandemic levels

Thank you for reading the news about OPEC expects oil demand for 2022 to exceed pre-pandemic levels and now with the details

Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia is set to drive energy investments in the Middle East and North Africa as the region is expected to wintness a 9-percent growth in investment to $879 billion by 2026, a new report from the Arab Petroleum Investments Corp. revealed.

The report titled “MENA Energy Investment Outlook 2022-2026” estimates a $74 billion increase from the previous forecast of $805 billion released in last year’s five-year outlook. 

According to the report, the ongoing tensions in Europe due to the Russia and Ukraine war have led to contrasting impacts on the region’s energy landscape, as energy exporters are increasing their project expenditure, primarily driven by the windfall of oil and gas revenues caused by the spike in prices due to the war.

However, the report further noted that geopolitical tensions and volatility will not curtail oil, gas, power and petrochemicals investment growth in MENA in the next five years. 

“Our latest MENA Energy Investment Outlook shows that the region continues to progress on its unique energy transition path. MENA countries shoulder the largest share of global investments in oil and gas going forward to ensure global energy security and avoid an impending super cycle that may severely hamper the world economy,” said Ramy Al-Ashmawy, senior energy specialist at APICORP.  

It added that committed projects comprise around 45 percent of the total energy investments in the Gulf Cooperation Council, 50 percent higher than the MENA-wide average of 30 percent.

The report predicted that Saudi Arabia’s gas-fired energy generation is expected to rise in the next five years, while oil-fired power output is expected to drop over the same period. 

Natural gas, which is already a dominant fuel for power generation, is expected to grow to maintain a power generation share of around 70 percent to 75 percent across MENA by 2024, the report added. 

On the other hand, oil-fired power is expected to drop from 24 percent of total generation to around 20 percent by 2024, it predicted. 

Blue and green hydrogen 

According to APICORP’s analysts, blue and green hydrogen is expected to dominate the emerging market in the region soon, and it predicted that hydrogen markets will start scaling up as the market foundations are established. 

Suhail Shatila, a senior energy specialist at APICORP, said: “In the medium term, blue hydrogen proves to be a more attractive option to the MENA region. Blue hydrogen can be produced at a relatively low cost, and it will only slightly disrupt the IOC and NOC’s existing business models.”

He added: “This is a central metric in the energy transition journey since hydrocarbon producers will play a key role in decarbonizing the upstream oil and gas sector and help reach net-zero targets by mid-century.”

The journey to achieve net-zero

The report added that energy diversification is on the top of the agenda of many countries in MENA, as a part of their shared policy objective to diversify the power mix with low-cost, low-carbon energy sources and bolster power supply security. 

It revealed that electrification via renewable energy sources will be a key driver which will help Saudi Arabia, Bahrain and the UAE reach their net-zero targets. 

The report noted that Jordan and Morocco are the two countries that have steadily reached their renewable targets in recent years. 

“The two countries have achieved their short-term policy targets, with Morocco reaching almost 40 percent of its installed capacity from renewable energy in 2021 and Jordan reaching nearly 20 percent,” said APICORP analysts. 

It added that other countries such as Saudi Arabia, the UAE, Egypt, and Oman have relatively low renewable energy generation, but "the share is expected to witness a significant increase with several planned and committed large-capacity projects in the pipeline.”

These were the details of the news OPEC expects oil demand for 2022 to exceed pre-pandemic levels for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT Saudi Arabia, China discuss collaboration in urban development during Beijing meeting

Author Information

I am Jeff King and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Al-KhaleejToday.NET with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Financial” category. Address: 383 576 Gladwell Street Longview, TX 75604, USA Phone: (+1) 903-247-0907 Email: [email protected]