With global investments falling, oil revenue decreasing and impacts on the global economy, including declining trade, global exploration and production spending fell by around 26 per cent in 2015, and a further 22 per cent drop is anticipated in 2016, OPEC chief predicted.

''Combined, this amounts to more than $300 billion, and this trend is expected to extend into its third year, which is unprecedented in the history of oil industry,'' said Mohammad Sanusi Barkindo, OPEC Secretary General, in a speech at Petrotech 2016, Panel: Uncertain Oil Prices, New Delhi, India, on Monday.

''This is a stark contrast and challenge when we all know that, apart from the development aspirations and healthy economic growth of many producing countries, our capital intensive industry always requires huge investments for the production of new barrels, not only to meet growing demand but also to accommodate for decline rates from existing fields. With the current state of the oil market, the industry will simply not be able to comply with the massive oil-related investment requirements that are estimated to be around $10 trillion in the period to 2040,'' he noted.

As in the previous downward cycles of the 1980s and 1990s, he explained, it had been necessary to find a way to expedite the long-delayed rebalancing of the market in order to restore stability. ''This current cycle’s recovery process has taken far too long, and the risk of delaying the adjustment any longer would be costlier and more complicated with a host of negative implications in the coming years,'' he added.

He pointed out that global macro conditions have continued to offer numerous other challenges as well from questions about global economic growth to environmental policies and political uncertainties in both oil consuming and producing countries.

''Such forms of uncertainty can be very costly for oil producers,'' he noted.

''OPEC Member Countries maintain a steadfast commitment to ensuring the long-term supply of the market. Our Member Countries continue to invest heavily in both the upstream and the downstream, despite recent increases in costs and despite a continuing shortage of skilled labour across the industry.'' The Petrotech, the International Oil and Gas Conference and Exhibition is a biennial platform for national and international experts in the oil and gas industry to exchange views and share knowledge, expertise and experiences.