If the global oil and gas industry is to meet rising demand over the next 25 years, an investment of $20 trillion has to be made, chief executive officer of, Amin Nasser stated at CERAWeek conference in Houston, USA on Tuesday.
According to CNBC, during the conference, Nasser revealed that the industry the downturn of between 2014 and 2016 had cost the industry $1 trillion in loss of potential investments.
Nasser said the industry was concerned about the current sentiments in the industry that had contributed to low investment.
“Future investments will only come if investors are convinced that oil will be allowed to compete on a level playing field, that oil is worth so much more, and that oil is here for the foreseeable future,” he said.
Further, Nasser urged the industry to challenge the growing notion that the world can do without proven and reliable sources.
“We must challenge mistaken assumptions about the speed with which alternatives will penetrate markets,” he advised.
Nasser’s observation comes at the time when the world is switching from the use of fossil fuels to renewable energy sources like wind and photovoltaic solar. Electric cars have been touted as the next “big thing” in the automobile industry.
Nasser also acknowledged that another development that was likely to overstrain the industry’s capacity to meet demand was the natural decline in developed fields.
However, he expressed confidence that oil market fundamentals and future demand growth would be healthy, despite significant oil price volatility and forecasts of rising shale oil production.