Saudi Arabia said global oil production could drop 30 per cent by the end of the decade due to falling investment in fossil fuels.
“We’re heading towards a phase that could be dangerous if there’s not enough spending on energy,” Oil Minister Abdulaziz bin Salman said in Riyadh. The result could be an “energy crisis”, he said.
The minister said daily oil output may fall by 30 million barrels by 2030. He urged energy companies and investors to ignore “scary messages” about oil and gas.
Prince Abdulaziz’s comments came shortly after the Saudi finance minister made a similar warning.
Their views differ from what most climate activists say is necessary to slow the warming of the planet. The International Energy Agency, which advises rich countries, has called for the cessation of new investment in fossil fuels if the world is to neutralise carbon emissions by 2050.
Saudi Arabia, the world’s biggest oil exporter, is among the few countries still spending billions of dollars to raise production. It’s trying to increase its capacity to 13 million barrels a day from 12 million by 2027.
Global expenditure on oil and gas projects slumped 30 per cent to $309 billion in 2020 and had only recovered slightly this year, according to Riyadh-based think tank the International Energy Forum.