Opec says $7.5 trillion investment needed in energy

OPEC upgrades oil demand forecasts on expectation of 380 million new cars on China's roads by 2035 and says world needs to invest nearly $8 trillion on new energy facilities.Petrol prices are unlikely to fall significantly anytime soon based on the latest long-term projections for the global oil market released by the Organization of Petroleum Exporting Countries (Opec).

The group of 12 major producing nations estimates that meeting increases in world oil demand through to 2035 will require $7.5 trillion (£4.6 trillion) worth of investment into building new infrastructure such as production plants, refineries and pipelines.

Opec, which accounts for a third of the world’s oil supply, says it will now have to pump 2.6 million barrels a day (b/d) more crude than it had originally anticipated by 2035, bringing its total long-term production estimate to 37 million b/d.

Opec said that total world oil demand will grow by 20 million b/d to 108 million b/d by 2035, which is an upward revision on it previous forecast. Total global demand for energy will increase by 52pc over the same period, according to the report.

The upgrades in long-term oil demand presented in Opec’s 2013 World Oil Outlook – the first since the group started publishing its forecasts - are largely being driven by rapid economic growth from Asia.

Car ownership in China and emerging Asian economies is cited by Opec as a major factor behind its new outlook for world oil demand. The number of passenger cars in China is expected to increase by 380 million vehicles by 2035, which is equal to 320 cars per 1,000 people in the country.