In contrast, Shell is taking a more drastic approach by reducing its upstream oil and gas workforce by more than 20 percent, or one-fifth of its core staff, to enhance efficiency and remain competitive with its peers in terms of operational performance. Despite expectations by most analysts about lower oil demand and lower oil prices, OPEC has warned of potential shortages of oil supply and is urging oil companies and oil-producing countries to invest more in exploring and developing new reserves. It predicts that oil demand will rise, leading to shortages and higher prices due to limited availability.

ExxonMobil’s concerns are similar to OPEC, as it states that global oil demand could exceed 100 million barrels per day by 2050, and the same for natural gas. This outlook persists even though the demand for electric vehicles is increasing, notably in China, where oil demand remains strong. This suggests that oil and gas will continue to play a significant role alongside emerging energy sources. For oil-producing and oil-exporting countries, the anticipated rise in oil prices presents an opportunity, although it poses challenges for global consumers. Higher oil prices could lead to inflation and increased costs, potentially impacting economic growth in both developing and developed countries.

wo major companies - ExxonMobil and Shell - with two differing viewpoints on the future of oil and gas and its impact on consumers, but one constant fact is that oil will continue to be a crucial part of our daily lives well beyond 2050. It is not something we can easily replace or eliminate. The need for increased oil exploration is pressing. OPEC+ cannot be solely responsible for boosting production without appropriate compensation for their investments.

For years, OPEC+ has called for greater exploration and investment in oil and gas, emphasizing that the global community must contribute. As production declines in some oil-producing countries, discoveries are essential to complement the efforts of OPEC+ efforts and bring additional barrels on stream. Despite the differing approaches of ExxonMobil and Shell, one fact remains clear: without further investment in upstream oil and gas, the industry could face a crisis. The message is crystal clear.

By Kamel Al-Harami
Independent Oil Analyst
 Email: [email protected]