Barkindo: World leaders must collaborate on ensuring steady oil output

Mohammad Barkindo, secretary-general, Organisation of Petroleum Exporting Countries (OPEC), has called on world leaders to collaborate on ensuring stable flow of global energy supplies. 

He said this at the 61st meeting of the joint technical committee (JTC) of the Declaration of Cooperation (DoC), held to examine the oil market situation and relevant trends.

The meeting took place ahead of the 39th meeting of the joint ministerial monitoring committee (JMMC) and the 27th OPEC and non-OPEC ministerial meeting (ONOMM) slated for March 31.

In his remark, Barkindo highlighted crucial roles played by the JTC in providing timely and reliable analysis of oil market conditions to facilitate decision-making processes, particularly during periods of uncertainty witnessed since the outbreak of COVID-19.

He also commended the efforts undertaken by the DoC participating countries in supporting stability and the rebalancing process in the global oil market.

“The heavy lifting done by the DoC countries has been instrumental in supporting these efforts,” he said. 

“Leading international organisations and institutions came together in the early days of the pandemic to endorse efforts to stabilise the energy markets.

“This high level of cooperation provided pivotal support to collective efforts undertaken by DoC countries.”

Speaking on recent market developments, he said: “We urge global leaders to follow this example of multilateralism to once again ensure an unhindered, stable and secure flow of energy to the whole world.”

Barkindo urged the DoC participants to persist with concentrating on the stabilisation of the oil market. 

“We must remain focused on balancing the oil market,” Barkindo said. 

Barkindo said that world oil demand was projected to grow by around 4.2 million barrels per day in 2022 to reach 100.9 million barrels per day, exceeding pre-pandemic levels.

Barkindo also welcomed plans by industry stakeholders to increase investment and launch new projects, including Aramoc’s intentions to bolster upstream capital spending by around 50 billion dollars this year.

“This underscores the commitment of the Kingdom of Saudi Arabia to address the world’s future energy needs,” he said.

The secretary-general concluded by wishing attending delegates a blessed holy month of Ramadan.

The Organisation of Petroleum Exporting Countries (OPEC) had said it would remain focused on a steady flow of energy supplies.

Timipre Sylva, minister of state for petroleum resources, had delineated poor investment and the exit of oil majors as limiting factors for Nigeria’s ability to pump sufficient oil for local and global markets.