Access to credit was a big challenge for the oil industry in the current cycle of contraction and the outlook for next year appears bleak for new investments, Mohammad Barkindo, secretary general of OPEC, said on Monday.

Speaking at the World Energy Congress in Istanbul, Barkindo said the oil contraction period caused mainly by excessive supply had been “the most severe contraction cycle” in the oil industry.

“At the moment, it is a cause of serious threat to the security of supply for both producers and consumers,” he added.

Barkindo said neither consuming nor producing countries had expected the contraction cycle to continue for as long as it had.

“They had expected a period of maybe six months to one year. Everyone, both the consumers and producers, are equally worried about this development,” he said.

Demand for oil in the mid-and long-term is expected to increase with populations rising swiftly in developing countries, according to Barkindo.

“We expect oil demand to reach 17 million barrels by 2040,” he said.

Barkindo added that during the low-price environment, new investments in the oil industry dropped by 26 percent.

•Adapted from Anadolu Agency report. Photo showsOPEC Secretary General Mohammad Barkindospeaking Monday at the World Energy Congress in Istanbul, Turkey.