According to Saudi Arabia, global oil production could fall by 30% by the end of the decade as a result of reduced investment in fossil fuels.
“We’re heading toward a phase that could be dangerous if there’s not enough spending on energy,” Oil Minister Abdulaziz bin Salman said in Riyadh. The result could be an “energy crisis,” he said.
According to the minister, daily oil output could fall by 30 million barrels by 2030. He urged energy firms and investors to disregard "scary messages" about oil and gas.
Prince Abdulaziz's remarks came just a few days after the Saudi finance minister issued a similar warning.
Their viewpoints differ from what most climate activists believe is required to slow global warming. If the world is to achieve carbon neutrality by 2050, the International Energy Agency, which advises rich countries, has called for a halt to new investment in fossil fuels.
Saudi Arabia, the world's largest oil exporter, is one of the few countries that is still spending billions of dollars to increase output. It aims to increase its capacity to 13 million barrels per day by 2027, up from 12 million now.
According to Riyadh-based think tank the International Energy Forum, global expenditure on oil and gas projects fell 30% to $309 billion in 2020 and has only slightly recovered this year.