Attracting domestic and foreign investments for the development of upstream oil and gas sectors tops the Oil Ministry’s priority list, as it is essential to ensure the security and supply of energy in the future.
Oil Minister Javad Owji made the statement after the 27th OPEC and non-OPEC ministerial meeting, held via videoconference on March 31, the Oil Ministry’s news portal reported.
“Iran has always sought the depoliticization of global energy market and it believes constructive interactions between oil producers and consumers are necessary to improve the security of global energy supply in the coming years,” he said.
“As speculated, OPEC+ decision on Thursday was almost similar to that of February, with a slight increase in crude output for May 2022, raising it from 400,000 barrels per day to 432,000 bpd.”
Owji noted that OPEC has always tried to depoliticize oil and frequently stressed the significance of new investments in the development of the upstream sector.
According to the official, making investments and developing Iran’s oil upstream sector, which has huge capacities in terms of hydrocarbon reserves, could help enhance the world’s energy security for next decades.
In view of the reports of the Joint Ministerial Monitoring Committee of OPEC and Non-OPEC, as well as the analyses of the world economic outlook and global oil supply-demand fundamental drivers in 2022, all OPEC+ member states came to a compromise on boosting oil production by 432,000 bpd in March, he added.
The Iranian oil minister assured that OPEC+ will continue its regular monitoring of market developments and take any necessary measures to maintain the stability of oil market, adding that member countries are ready to take appropriate measures to maintain stability and safeguard the achievements of this agreement.
“OPEC+ members’ compliance with their agreement was 136% in January 2022,” he said.
“Recent data and reports showed that the global oil market is moving toward balance and stability despite some geopolitical tensions and concerns over a possible decline in the world’s oil supply, thanks to the improved economic indicators in the world, particularly in leading oil consuming countries, including China and India, as well as the appropriate OPEC+ member states’ compliance.”
Owji noted that OPEC+ members are keeping an eye on the global supply-demand balance and they are prepared to swiftly make decisions and take necessary measures as per oil market conditions.
He added that political tensions in the world’s oil-rich regions raise concerns over the possibility of energy supply disruption, “however, we should consider that such tensions could cause price shocks that would proportionally affect the market outlook”.
“OPEC officials and many oil and energy analysts have repeatedly stated that investment in the upstream oil sector is vital for ensuring an adequate and secure energy supply in the coming years,” he said.
