By Teddy Nwanunobi
The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), HE Mohammad Sanusi Barkindo, has noted that the global transition to clean energy is crucial.
Barkindo, however, pointed out that the current conversation around it is “misrepresented” and “distorted” by emotions.
The OPEC scribe made the observation at the ongoing three-day world’s biggest gas traders and producers’ meeting in Dubai, United Arab Emirates (UAE) for the Gastech conference.
“Emotions have taken over industry fronts. The global conversation has been skewed to mean that we have to transit from one set of energy sources to another,” Barkindo said at a high-profile energy conference.
Valuechain reports that Gastech is the first major in-person event for the industry since the onset of the coronavirus pandemic.
The conference, which commenced on Tuesday, September 21, is happening just as Europe faces a gas crunch, with prices spiking to record levels, and analysts warning that some countries could face blackouts when winter sets in.
Barkindo added that this has affected investor sentiment in some energy sources, and will have implications for the ability of the oil industry to invest across value chains.
He said that the pressure is being amplified by hundreds of climate litigations around the world, as well as by civil societies and activists who are taking over the discussions.
In a previous speech, Barkindo referred to a Dutch court ordering Royal Dutch Shell to cut its global carbon emissions by 45 per cent by the end of 2030 compared to 2019 levels, describing it as a “dramatic and far-reaching decision”.
“These court decisions could further shape energy policy directions and investment trends that are exclusionary in nature. This world will continue to consume energy. We project that demand will increase by 28 per cent by 2045, and oil and gas will remain the dominant sources of energy,” Barkindo stated.
He said that oil will contribute 28 per cent of global energy needs by 2045, highlighting the importance of a balanced and inclusive approach in the global energy transition. Around 26 to 27 per cent will be from gas.
“The world needs continuous, predictable, and adequate investments in energy, particularly in oil and gas which he said was practically irreplaceable because of the scale of its contribution to the global energy mix in the next decades,” he added.
Barkindo also called on the investment community “not to crowd out the oil and gas industry, because nobody can tell us how to replace this nearly 50 per cent of the global energy mix”.
The OPEC chief said that the event, which runs until Thursday, September 23, is the perfect place for the energy industry to “pause and ask the hard questions”, and to realign the global discussions on energy transition.
Valuechain reports that the Dubai conference was attended by major energy and gas players in the industry, as well as ministers from the UAE, Qatar, Turkey, Nigeria and Indonesia, among others.