Policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC, Secretary General Haitham Al Ghais told Reuters.
A lack of investment in the oil and gas sector following a price slump sparked by COVID-19 has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption.
The price of Brent crude came close to an all-time high of $147 a barrel in March; after Russia’s invasion of Ukraine exacerbated supply concerns. While prices have since declined, they are still painfully high for consumers and businesses on a global scale.
Oil and gas investment is up 10% from last year but remains well below 2019 levels; the International Energy Agency said last month; adding that some of the immediate shortfalls in Russian exports need to be met by production elsewhere.
“Don’t blame OPEC, blame your own policymakers and lawmakers, because OPEC; and the producing countries have been pushing time and time against for investing in oil (and gas),” Al Ghais said.