Latest news with #AlGhais
Calgary Herald
3 days ago
- Business
- Calgary Herald
Varcoe: As Trump and OPEC leader come to Alberta, energy markets 'hanging on their words'
Article content Amid such turbulence, clarity remains in short order and is clouding investment decisions. Article content That's why energy experts will closely scrutinize next month's visits, including the speech in Calgary by Al Ghais, a former Kuwaiti governor to the Organization of Petroleum Exporting Countries. Article content 'It doesn't really seem like the market is exactly sure what to make of what OPEC is doing right now, (with) a lot of contradictory signals and a lot of confusion,' Rory Johnston, founder of the Commodity Context newsletter, said Thursday. Article content 'Anytime the secretary general speaks over the next little while, the market is watching to try to figure out what all this means. Obviously, for a Canadian audience, that is especially acute given the fact that we like high prices here.' Article content Oil is Canada's largest export item, but high prices have been missing since March, when WTI crude hovered near US$72 a barrel. Many analysts expect weak prices will continue through 2025 and into next year. Article content Article content The tandem of U.S. 'reciprocal tariffs' unveiled against other countries on April 2 and OPEC+ agreeing to increase its oil supply led to a sharp drop in prices through much of the spring. On Thursday, WTI crude closed at US$60.90 a barrel, down 90 cents on the day. Article content The provincial government is projecting oil prices will average $68 a barrel for its fiscal year, potentially creating a massive revenue shortfall for the province if tepid prices continue. Article content Rystad Energy is forecasting benchmark U.S. oil prices will average $66 a barrel for this year, and $69 next year, if OPEC+ take steps to cut supply to support markets, as it has done in the past. Article content However, if the cartel and its allies don't take such action, WTI crude prices could be in the mid US$50-a-barrel range next year, said Bell. Article content 'Without OPEC coming back in to manage the market later on in this year, we do run the risk of being in a fairly low crude oil price environment,' Bell said. Article content Article content 'There is a little bit of upside on WTI prices for the summer months, but I think over the rest of 2025, we're going to be in that low $60s range, which does make it challenging from an Alberta budget perspective.' Article content During a presentation at a conference Wednesday, she noted oil markets are facing structural changes from a shifting world order, with U.S. tariffs at a level not seen in decades. Article content Rystad has cut expected global oil demand this year by 400,000 barrels per day because of the direct impact of tariffs. Article content In Canada, however, some of the hit will be offset by a smaller discount facing heavy oil. Article content The price differential between WTI and Western Canadian Select heavy oil has narrowed to about $10 a barrel with the startup of the Trans Mountain pipeline expansion, which has opened up new markets for producers.
Calgary Herald
3 days ago
- Business
- Calgary Herald
Varcoe: As Trump and OPEC come to Alberta, energy markets 'hanging on their words'
Article content Amid such turbulence, clarity remains in short order and is clouding investment decisions. Article content That's why energy experts will closely scrutinize next month's visits, including the speech in Calgary by Al Ghais, a former Kuwaiti governor to the Organization of Petroleum Exporting Countries. Article content Article content 'It doesn't really seem like the market is exactly sure what to make of what OPEC is doing right now, (with) a lot of contradictory signals and a lot of confusion,' Rory Johnston, founder of the Commodity Context newsletter, said Thursday. Article content 'Anytime the secretary general speaks over the next little while, the market is watching to try to figure out what all this means. Obviously, for a Canadian audience, that is especially acute given the fact that we like high prices here.' Article content Oil is Canada's largest export item, but high prices have been missing since March, when WTI crude hovered near US$72 a barrel. Many analysts expect weak prices will continue through 2025 and into next year. Article content Article content The tandem of U.S. 'reciprocal tariffs' unveiled against other countries on April 2 and OPEC+ agreeing to increase its oil supply led to a sharp drop in prices through much of the spring. On Thursday, WTI crude closed at US$60.90 a barrel, down 90 cents on the day. Article content The provincial government is projecting oil prices will average $68 a barrel for its fiscal year, potentially creating a massive revenue shortfall for the province if tepid prices continue. Article content Rystad Energy is forecasting benchmark U.S. oil prices will average $66 a barrel for this year, and $69 next year, if OPEC+ take steps to cut supply to support markets, as it has done in the past. Article content However, if the cartel and its allies don't take such action, WTI crude prices could be in the mid US$50-a-barrel range next year, said Bell. Article content 'Without OPEC coming back in to manage the market later on in this year, we do run the risk of being in a fairly low crude oil price environment,' Bell said. Article content Article content 'There is a little bit of upside on WTI prices for the summer months, but I think over the rest of 2025, we're going to be in that low $60s range, which does make it challenging from an Alberta budget perspective.' Article content During a presentation at a conference Wednesday, she noted oil markets are facing structural changes from a shifting world order, with U.S. tariffs at a level not seen in decades. Article content Rystad has cut expected global oil demand this year by 400,000 barrels per day because of the direct impact of tariffs. Article content In Canada, however, some of the hit will be offset by a smaller discount facing heavy oil. Article content The price differential between WTI and Western Canadian Select heavy oil has narrowed to about $10 a barrel with the startup of the Trans Mountain pipeline expansion, which has opened up new markets for producers. Article content Meanwhile, the outlook for natural gas producers in Western Canada is looking up with the impending startup of LNG Canada, which will export about 1.8 billion cubic feet (bcf) per day to customers in Asia.
Zawya
12-02-2025
- Business
- Zawya
Oil sector needs $640bln annual investment: OPEC chief
The oil sector will need substantial investments to reliably meet the expected growth in demand, with cumulative investment requirements estimated at $17.4 trillion between 2024 and 2050, or approximately $640 billion annually, said Haitham Al Ghais, Secretary-General of OPEC. In statements to the Emirates News Agency (WAM) during the World Governments Summit (WGS) 2025, Al Ghais highlighted that the exploration and production sectors will absorb the largest share of investments in the oil sector, with total investment needs in these areas estimated at $14.2 trillion, or around $525 billion annually. Additionally, investment needs in refining, manufacturing, transportation, and storage are expected to reach approximately $1.9 trillion and $1.3 trillion, respectively, over the same period. He explained that OPEC's priorities include supporting and ensuring global oil market stability to secure reliable, cost-effective, and regular petroleum supplies for consumers, a steady income for producers, and a fair return on capital for investors in the petroleum industry. The Secretary-General emphasised OPEC's commitment to securing the future of energy across all types and sources to address energy poverty and promote prosperity for inclusive economic growth under the "all-peoples, all-fuels and all-technologies" approach. Al Ghais noted that these goals are essential for developing the economies of many countries, particularly developing nations that are the main drivers of oil demand. To achieve these objectives, investment in all types of energy, including the oil industry, must be encouraged. According to OPEC's World Oil Outlook (WOO) 2024, global oil demand is expected to exceed 120.1 million barrels per day by the end 2050, an increase of 18 million barrels per day from 2023. Due to population growth, urbanisation, and economic expansion, developing countries are expected to see oil demand growth of about 28 million barrels per day, while developed countries will experience a decline in demand by about 10 million barrels per day. Al Ghais pointed out that the global oil demand growth forecast for 2025 remains at 1.4 million barrels per day. Demand in OECD member countries is expected to grow by 0.1 million barrels per day, while non-OECD countries are expected to see a growth of 1.3 million barrels per day. Regarding OPEC's role in maintaining global oil market stability, Al Ghais said the organisation has long recognised the importance of dialogue between producers and consumers in all areas of energy. He added that key international issues related to energy, such as market stability, supply and demand security, economic prospects, and environmental concerns, directly impact the balance of global energy markets, particularly the oil and gas industry. Proactive dialogue is essential to align the views of all stakeholders. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
ARN News Center
12-02-2025
- Business
- ARN News Center
$640 bn needed annually to meet oil demand growth, says OPEC
Haitham Al Ghais, Secretary-General of OPEC, said investment needs in the oil sector will remain substantial to meet the expected growth in oil demand, with cumulative investment requirements estimated at $17.4 trillion between 2024 and 2050, or approximately $640 billion annually. In statements to the Emirates News Agency (WAM) during the World Governments Summit (WGS) 2025, Al Ghais highlighted that the exploration and production sectors will absorb the largest share of investments in the oil sector, with total investment needs in these areas estimated at $14.2 trillion, or around $525 billion annually. Additionally, investment needs in refining, manufacturing, transportation, and storage are expected to reach approximately $1.9 trillion and $1.3 trillion, respectively, over the same period. He explained that OPEC's priorities include supporting and ensuring global oil market stability to secure reliable, cost-effective, and regular petroleum supplies for consumers, a steady income for producers, and a fair return on capital for investors in the petroleum industry. The Secretary-General emphasised OPEC's commitment to securing the future of energy across all types and sources to address energy poverty and promote prosperity for inclusive economic growth under the "all-peoples, all-fuels and all-technologies" approach. Al Ghais noted that these goals are essential for developing the economies of many countries, particularly developing nations that are the main drivers of oil demand. To achieve these objectives, investment in all types of energy, including the oil industry, must be encouraged. According to OPEC's World Oil Outlook (WOO) 2024, global oil demand is expected to exceed 120.1 million barrels per day by the end 2050, an increase of 18 million barrels per day from 2023. Due to population growth, urbanisation, and economic expansion, developing countries are expected to see oil demand growth of about 28 million barrels per day, while developed countries will experience a decline in demand by about 10 million barrels per day. Al Ghais pointed out that the global oil demand growth forecast for 2025 remains at 1.4 million barrels per day. Demand in OECD member countries is expected to grow by 0.1 million barrels per day, while non-OECD countries are expected to see a growth of 1.3 million barrels per day. Regarding OPEC's role in maintaining global oil market stability, Al Ghais said the organisation has long recognised the importance of dialogue between producers and consumers in all areas of energy. He added that key international issues related to energy, such as market stability, supply and demand security, economic prospects, and environmental concerns, directly impact the balance of global energy markets, particularly the oil and gas industry. Proactive dialogue is essential to align the views of all stakeholders.
Trade Arabia
11-02-2025
- Business
- Trade Arabia
Oil sector needs $640bn annual investment: Opec chief
The oil sector will need substantial investments to reliably meet the expected growth in demand, with cumulative investment requirements estimated at $17.4 trillion between 2024 and 2050, or approximately $640 billion annually, said Haitham Al Ghais, Secretary-General of OPEC. In statements to the Emirates News Agency (WAM) during the World Governments Summit (WGS) 2025, Al Ghais highlighted that the exploration and production sectors will absorb the largest share of investments in the oil sector, with total investment needs in these areas estimated at $14.2 trillion, or around $525 billion annually. Additionally, investment needs in refining, manufacturing, transportation, and storage are expected to reach approximately $1.9 trillion and $1.3 trillion, respectively, over the same period. He explained that OPEC's priorities include supporting and ensuring global oil market stability to secure reliable, cost-effective, and regular petroleum supplies for consumers, a steady income for producers, and a fair return on capital for investors in the petroleum industry. The Secretary-General emphasised OPEC's commitment to securing the future of energy across all types and sources to address energy poverty and promote prosperity for inclusive economic growth under the "all-peoples, all-fuels and all-technologies" approach. Al Ghais noted that these goals are essential for developing the economies of many countries, particularly developing nations that are the main drivers of oil demand. To achieve these objectives, investment in all types of energy, including the oil industry, must be encouraged. According to OPEC's World Oil Outlook (WOO) 2024, global oil demand is expected to exceed 120.1 million barrels per day by the end 2050, an increase of 18 million barrels per day from 2023. Due to population growth, urbanisation, and economic expansion, developing countries are expected to see oil demand growth of about 28 million barrels per day, while developed countries will experience a decline in demand by about 10 million barrels per day. Al Ghais pointed out that the global oil demand growth forecast for 2025 remains at 1.4 million barrels per day. Demand in OECD member countries is expected to grow by 0.1 million barrels per day, while non-OECD countries are expected to see a growth of 1.3 million barrels per day. Regarding OPEC's role in maintaining global oil market stability, Al Ghais said the organisation has long recognised the importance of dialogue between producers and consumers in all areas of energy. He added that key international issues related to energy, such as market stability, supply and demand security, economic prospects, and environmental concerns, directly impact the balance of global energy markets, particularly the oil and gas industry. Proactive dialogue is essential to align the views of all stakeholders.
