The oil industry is at risk of a supply crisis. This opinion was expressed by the head of the Saudi state oil company Saudi Aramco Amin Nasser.
Major energy companies focus on shale oil and other opportunities to increase production in the short term instead of the long-term mega-projects they focused on in the past years.
- The growth of investments in the short-term production cycle will not be sufficient to meet the growing demand for oil in the future, - he said.
"Projects such as shale oil production are unlikely to significantly reduce global oil needs until 2040, "- quotes Nasser "Finmarket".
The priority of major oil companies around the world after the sharp decline in the industry, noted a few years ago, was to reduce costs and encourage shareholders through the payment of dividends and share re-purchase.
The reluctance of oil companies to invest in projects that require large amounts of money and time, but also provide a longer-term return, says that "companies are afraid that they will not be able to meet the needs of shareholders," the head of Saudi Aramco said.
Large oil companies, including ExxonMobil, Chevron and Royal Dutch Shell, are actively investing in the US shale sector, which allows to start receiving income much faster than in the case of traditional oil production projects.
However, the global market will continue to depend on traditional oil production, Amin Nasser said.
According to the forecast of the International energy Agency (IEA), insufficient investment in new large-scale oil production projects will lead to a shortage of supplies in the world market in the early 2020s, while the growth of shale production will stop.
According to Rystad Energy consulting company, the total investment of energy companies in the second half of the decade will be reduced by almost half-to $443.5 billion compared to the level of $875.1 billion recorded in 2010-2015.
Saudi Arabia is the world's largest oil exporter.