* World needs to invest $38 trillion in oil and gas by 2035
* Up 15 pct on IEA's 2010 estimate
* Lack of investment could raise oil prices in next 5 years
(Adds quotes from Eni's CEO, background)
By Muriel Boselli and Sybille de La Hamaide
PARIS, Oct 18 The Arab Spring has disrupted
investment plans in oil and gas projects as some governments in
the region have shifted their focus to meet increasing demands
from their population, the International Energy Agency said on
As a result, this could in the next five years push oil
prices higher, the IEA's chief economist Fatih Birol said at a
briefing on the sidelines of the agency's two-day ministerial
The IEA estimates the world needs to spend $38 trillion to
meet projected energy demand up to 2035, up 15 percent from
their 2010 forecast of $33 trillion.
World energy ministers and industry leaders started a
two-day meeting on Tuesday hosted by the IEA to discuss
investment needs with energy-hungry emerging economies.
Birol said there was reluctance from some oil producers to
"One of the question mark is over the Middle East and
Northern Africa region which is crucial to meet demand growth
and to meet decline in the existing production," he said.
"Some countries seem to follow different oil policies not to
raise production as much as the market would like to see," he
said. "In other countries, they are not able to put money for
projects on the table because they have other pressing issues in
their countries to meet demands from the population."
"In some countries because of the unrest the projects are
not going forward as much as we would like to see," Birol added.
The IEA said 90 percent of the growth in oil production in
the next 10 years needs to come from Middle Eastern and North
In an excerpt from the World Energy Outlook to be published
on Nov. 9, the IEA said $10.0 trillion would be needed for oil
investments, $16.9 trillion for power, $9.5 trillion for natural
gas from 2011 to 2035.
In a speech to the IEA's ministerial delegates, Eni
Chief Executive Paolo Scaroni said that while the
impact of the Arab Spring on energy security was difficult to
assess for now, he had good reasons to be optimistic.
"The first is that the way the crisis evolved in Libya is an
exception, rather than the rule," Scaroni said, adding that
after months of fighting, Libya had returned to production very
quickly. Eni was the largest foreign producer in Libya before
the civil war.
Scaroni said his main reason to be optimistic about Middle
Eastern and Northern Africa oil supply was Iraq, even though it
was still unclear whether it would meet its 12 million barrel
per day output target for 2017.
(Additional reporting by Tom Bergin and Caroline Jacobs;
Editing by Marie Maitre)