Oil and Gas Industry plays a Vital Role towards cutting Emissions – OPEC Sec Gen
The Secretary General of OPEC, Mr. Haitham Al Ghais has said that energy transition requires the involvement of all forms of energy, including oil and gas, to help lower emissions.
He called on the the hydrocarbons industry to continue investing to guarantee energy security,
There is no one-size-fits-all solution,” Al Ghais told the India Energy Week taking place in Bengaluru. “The focus needs to be on emissions reduction, not a choice between fuels.”
“There is a need to ensure that all voices are heard, all relevant technologies employed, and all energy sources utilized. Alongside energy transition, the oil and gas industry needs to continue investing to ensure energy security.
“Chronic underinvestment needs to be rectified. It is not something we can leave till tomorrow. It is about today, ” Ghais said.
His comments were echoed by Sultan al-Jaber, the CEO of the UAE’s Abu Dhabi National Oil Co. and president of COP28 UN Climate Change Conference taking place in Dubai in 2023. Jaber, who is also the minister for industry and advanced technology, is the first CEO of a company to hold a COP presidency, an appointment that ruffled the feathers of some non-governmental organizations.
‘Conflict of interest’
“The energy transition will require every segment of society working together in an inclusive effort, and that surely includes the efforts of the energy industry,” Jaber told India Energy Week.
“In my view, it is not a conflict of interest. It is in fact our common interest to have the energy industry working alongside everyone on the solutions that the world desperately needs.”
Officials from the UAE, OPEC’s third biggest producer, have emphasized the need to continue investing in the oil and gas industry, while at the same time reducing their emissions.
Officials from Saudi Arabia and the UAE, which are ramping up their oil production capacities by 2027, often cite their low carbon-intensive oil production as an indication they are likely to supply the world’s last oil barrels.
“The world will consume 30% more energy by 2050. It still needs hydrocarbons, and they need them to bridge the current energy system to the new energy system.
“We cannot under any circumstances think that we can unplug the current energy system before we actually build the new energy system. As such, we must minimize the carbon footprint and only invest in the least carbon intensive barrels and continue to reduce their intensity,” Jaber said.
New technologies
Jaber also emphasized the need to invest and adopt new technologies, such as carbon capture, storage and utilization, and hydrogen to lower the oil and gas industry’s emissions and participate in energy transition.
According to him, Renewables alone are not enough particularly in hard to abate sectors. Without a breakthrough in battery storage, we must invest heavily in carbon capture, nuclear power and the hydrogen value chain.
Joseph McMonigle, secretary general of International Energy Forum, also stressed the need for a two-pronged approach of investing in hydrocarbons and reducing emissions.
Energy security, not just energy transition, should be a top priority, he told India Energy Week.
“Energy security was out of fashion for many years, but today the energy crisis has delivered a reality check and put energy security back on the agenda worldwide. It is often misunderstood. True global energy security cannot be a zero-sum game where the winner takes all at the expense of others,” McMonigle said.
McMonigle, citing an IEF study, emphasised that annual upstream oil and gas investment will need to hit $640 billion in 2030 to ensure adequate supplies.
“Even if the industry presses ahead with the clean energy revolution, it is a fact we will rely on oil and gas for our energy needs today. So, while we ramp up investment in renewables and pursue the energy transition, we need to keep investing in oil and gas globally and protect the quality of life for everyone,” he said.
