The OPEC Secretary-General assures that Venezuelan and Iranian oil will be able to alleviate the energy crisis and the supply shortage in the global market.
The head of the Organization of the Petroleum Exporting Countries (OPEC), Nigeria's Mohamad Barkindo, denounced on Tuesday that the oil and gas industry is "under siege" due to years of underinvestment, adding that the resulting supply shortages could be alleviated if oil from Iran and Venezuela were allowed to flow back into the international market.
Oil Prices Drop Amid OPEC+ Decision
Years of sanctions have limited supplies from Iran and Venezuela. In addition, the West imposed sanctions on Russia, a member of OPEC+, which groups the Organization of Petroleum Exporting Countries and allies, due to the Russian special military operation in Ukraine, which has also caused a reduction of supply in oil markets.
"However, we could unlock resources and strengthen capacity if oil produced by the Islamic Republic of Iran and Venezuela were allowed to return to the market," Barkindo has said during an energy conference in Abuja, Nigeria's capital. The OPEC Secretary-General noted that oil demand grows even as investment falls and prices rise.
Alluding to the enormous challenges facing the energy industry on multiple fronts, Barkindo has warned that "the oil and gas industry is under siege," citing geopolitical developments in Europe, where the war in Ukraine has left many countries vulnerable to rising energy prices.
OPEC ensures that oil from Iran and Venezuela can alleviate the energy crisis. Its secretary Mohamad Barkindo predicted that the world's primary demand for crude oil will increase until 2045
"The ongoing war in Ukraine, a COVID-19 pandemic that is still with us, and inflationary pressures around the world have coalesced into a perfect storm that is causing significant volatility and uncertainty in commodity markets in general, most importantly, in the energy world," he has said.