DUBAI- Oil producer group OPEC said on Wednesday it was encouraged by a commentary from the International Energy Agency (IEA) which underscored the importance of oil security, while the two remained far apart on the demand outlook.
The commentary by the IEA, which advises industrialized countries, follows clashes between it and OPEC in recent years over issues such as long-term demand and the need for investment in new supplies.
“At OPEC, we are encouraged by this message and the reference to the continuing importance of oil to the world,” the Organization of the Petroleum Exporting Countries said in a statement.
The two sides have diverging views on oil demand for this year and beyond. The IEA expects demand to peak by 2030 while OPEC sees no peak in its forecasts, which stretch to 2045.
The IEA said global dependence on oil was decreasing but remained deep-rooted and supply disruptions could still lead to “significant economic harm and have a substantial negative impact on people’s lives.”
“There is a high degree of uncertainty around how quickly demand will fall, leaving oil companies facing difficult and commercially risky decisions around upstream investment,” the IEA said in a commentary by energy security analyst Ronan Graham and researcher Ilias Atigui on Monday.
OPEC agreed but said the IEA’s calls for no new investments in oil and natural gas have “contributed significantly to this uncertainty, which has the potential to lead to major energy chaos, not the desired energy security.”
