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Adipec 2016: Opec warns against investment cutbacks

abu dhabi - There has never been a consecutive three-year decline in investments in the history of the oil industry

The oil market is in turmoil and has been so a bit long, said world leaders who put on a brave face at the opening ceremony of the 19th Abu Dhabi International Petroleum Exhibition and Conference (Adipec), which was inaugurated by Shaikh Hamed bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince's Court.

Opec secretary-general Mohammad Barkindo said the importance of such an event cannot be over-estimated. He noted that all stakeholders should maintain dialogue.

The Opec top executive also issued a caveat. "If the market and financial conditions do not improve, there is the distinct possibility that we could see a third year of investment cutbacks. To put this into the oil industry's context, there has never been a consecutive three-year decline in its history."

Despite challenges, Barkindo struck an optimistic note. "The current oil market is a challenging environment. The best way forward is for all industry stakeholders to continually maintain dialogue and work towards achieving more stability for our industry. This will help us deliver a sustainable energy future for all producers and consumers," he said.

- ashwani@khaleejtimes.com