The world will need an additional 11 million barrels a day of OPEC crude by 2030 even if ambitious climate change policies are implemented, the head of the International Energy Agency said Tuesday.
Around $10 trillion of investment is needed by 2030 under the IEA's "450 ppm scenario," which forecasts efforts needed to stabilize climate change, said Nobuo Tanaka, executive director of the Paris-based watchdog for the Organization of Economic Cooperation and Development.
The scenario assumes an average oil price of $85 a barrel through the period.
The IEA is watching oil prices "very closely" and is wary of oil's recent surge jeopardizing economic recovery, Tanaka told the Oil & Money conference in London. "The price should not hurt economic growth."
Oil demand in China and India are rebounding, but is still depressed in OECD countries, he said.
"Inventories are still very high" in the OECD, he said.
Tanaka welcomed moves to impose stricter regulation of oil markets, particularly because speculation was playing a role in pushing up prices. He said markets would also function better with greater transparency of oil production capacity and reserves.
Tanaka called for consuming countries to raise their energy efficiency and invest in renewable energy. He also said it was necessary for oil-producing countries to invest in output capacity.