OPEC CEO: Venezuela and Iran could ease the energy crisis

The oil and gas industry is “under siege” due to years of underinvestment, OPEC Secretary-General Mohammad Barkido argued on Tuesday, adding that energy supply shortfalls could be eased if Iran and Venezuela were allowed to export more oil.

It is recalled that for years the two countries have been subject to sanctions, which have led to a limitation of their production.

Now, however, the oil market has become tighter as the West has also imposed sanctions against Russia, a member of the OPEC+ scheme, due to its invasion of Ukraine on February 24, as reported by Reuters.

“We could, however, unlock resources and boost production capacity if oil produced by the Islamic Republic of Iran and Venezuela is allowed to return to the market,” Barkido added during an energy conference in the capital Nigeria.

The problems in the oil industry have also been increased by the effort of some countries to divest from the hydrocarbon sector, according to the OPEC secretary general.

Barkido predicted that global primary oil demand will increase until 2045, at a time when refining capacity in Organization for Economic Co-operation and Development countries fell in 2021 by 3.3%.

“Our industry now faces enormous challenges on many fronts,” OPEC’s secretary general said, speaking at the conference.

“They also threaten our investment potential today and in the long term. To put it bluntly, dear friends, the oil and gas industry is under siege”, stressed Barkido, also referring to the geopolitical developments in Europe, where the war in Ukraine has make many countries the victims of soaring energy prices.

“The ongoing war in Ukraine, the ongoing coronavirus pandemic, and inflationary pressures around the world have created a perfect storm that is causing significant volatility and uncertainty in commodity markets in general. Especially in the energy sector,” he said.