Excellencies, distinguished delegates, ladies and gentlemen,

It gives me great pleasure to be here with you in Cape Town to take part in Africa Energy Week 2024.

Let me begin by thanking the organizers and sponsors of Africa Energy Week, in particular NJ Ayuk, Executive Chairman of the Africa Energy Chamber for inviting me to participate in this important event.

I could not think of a more pristine location to host an event than here in Cape Town. This city’s splendid mix of natural beauty and rich history make it one of the world’s great treasures!

My compliments go to the organizers for the excellent and timely programme that has been developed for this year’s event and for the excellent arrangements and warm hospitality.

Africa Energy Week continues to go from strength to strength and is now a leading event on the global industry calendar.

I am extremely pleased to see many of OPEC’s Heads of Delegation participating here, as well as some that are part of the OPEC-non-OPEC Declaration of Cooperation.

Excellencies, distinguished delegates

I would now like to take just a few minutes to share with you OPEC’s views on the global oil and energy markets and some key issues impacting the oil and gas industry globally and here in Africa.

As far as the future of oil and gas is concerned, OPEC has a positive outlook.

We see a bright future ahead with significant opportunities for robust long-term growth.

To illustrate, let me share with you a few statistics from our latest World Oil Outlook, which was launched on the 24th of September in Brazil:

·         We see global energy demand rising by an estimated 24% by 2050.

·         This will be fuelled by a world economy that is expected to more than double in size, from $165 trillion in 2023 to $358 trillion in 2050.

·         Driving this economic growth is a rapidly expanding world population, which is expected to reach 9.7 billion people by 2050, with most of this growth seen in developing countries, such as here in Africa.

·         Urbanization will continue to intensify. Over the next six years to 2030, around half a billion people are expected to move to cities across the world. This urbanization drive will require the addition of approximately 105 cities the size of Cape Town. And by 2050, more than 6.6 billion people are set to be living in cities.

These trends make it clear that the world will require all forms of energy to meet long-term energy needs. It is not one or the other, it is all.

Oil and gas are set to remain the predominant fuels in the energy mix with a combined share above 53% by 2050. Oil will retain the largest share at 29% and gas will be at 24%.

To ensure security of supply in meeting forecasted future demand, the industry will need to boost investment levels significantly in the years to come.

According to our research, cumulative oil-related investment requirements from now until 2050 will amount to approximately $17.4 trillion or around $640 billion per year on average to meet growing demand requirements. The bulk of this is required in the upstream, where total investment needs are $14.2 trillion, while downstream and midstream are estimated to be $1.9 trillion and $1.3 trillion, respectively.

I am pleased to see that this important issue has been integrated into Africa Energy Week’s theme: “Invest in African Energies—Energy Growth Through an Enabling Environment.”

Securing this vital funding is essential to maintaining security of supply and avoiding unwanted volatility.

For Africa, in the ground, the future looks bright. It has an estimated 120 billion barrels of proven oil reserves and around 18 trillion standard cubic metres of natural gas.

It is vital that African countries can develop these resources, with access to the necessary funding and financing. This will be vital for the economic and social development of these nations and their peoples. 

Excellencies, delegates,

In five days, COP 29 will get underway in Azerbaijan. OPEC and its Member Countries, the majority of which are in Africa, will be in Baku to help promote fair and balanced climate and energy outcomes.

Our goal is clear: to ensure the voices of our Member Countries are heard and that the unique circumstances of developing nations are taken into consideration and respected.

The fact is that still today, billions of people around the world are playing energy catch up, with no access to modern energy services.

For these people, many of whom call the African continent home, talk of achieving net zero is neither a priority nor a reality. They are focused on simply attaining basic energy requirements, such as lighting their homes, figuring out clean cooking solutions or how to find motorized transport to school or work.

Thus, on the issue of energy poverty, we urge world leaders to unite and advocate for the necessary support and resources to make a difference in addressing this important matter.

In this regard, OPEC and its Member Countries will be actively engaged at COP 29 to advocate for a balanced and fair process, particularly with regard to climate finance and technology, and one which continues to take into account the principle of Common but Differentiated Responsibilities and Respective Capabilities. 

This is crucial for Africa, to ensure that any future energy pathways meet the unique needsof its citizens.

Excellencies, ladies and gentlemen,

Looking ahead, I would like to emphasize that OPEC will continue to prioritize dialogue and cooperation with all of its energy partners, including here in Africa.

In this regard, we look forward to today’s OPEC-Africa Roundtable. This will take place after a video presentation of the World Oil Outlook.

The Roundtable will allow us to delve deeper into some of the key energy opportunities and challenges that Africa is facing.

We look forward to very engaging discussions and hope you will join us for that.

Thank you, and I wish us all a highly successful Africa Energy Week!