OPEC Demands Oil Investments Despite Push for Energy Transition
The Organisation of the Petroleum Exporting Countries is seeking more investment in oil despite global push for renewable energy sources.
OPEC said oil remains indispensable in the renewable energy transition, projecting in its recent 2023 World Oil Outlook that the global oil demand would hit 116 million barrels a day by the year 2045.
The Secretary-General of OPEC, Haitham Al Ghais, had earlier disagreed with calls to stop investments in new oil projects, saying such calls were “misguided and could lead to energy and economic chaos”.
In a series of posts on its X handle, OPEC maintained that “The transition to renewable energy will require a lot of steel, concrete and plastic. For example, wind turbine foundations are reinforced with concrete, and the towers and blades are made from steel and plastic.
“Oil-powered trucks and ships are also used to transport these parts to installation sites. Oil remains indispensable in the production of materials essential for smooth energy transitions.”
According to reports, the new energy world order is seeking the replacement of fossil fuels with renewable energy sources like solar, wind and water.
In the latest World Oil Outlook, Al Ghais maintained that while the world needs more energy, there was also the need to continually reduce emissions, subscribing to global best practices and cutting-edge, best-in-class technologies.
He suggested carbon capture utilisation and storage, direct air capture, clean hydrogen technologies, the circular carbon economy, and others.
According to Al Ghais, the platform for building a sustainable energy future for all also comes from stability in the energy market remains the core focus of OPEC and its partners in the Declaration of Cooperation.
“The continued proactive, preemptive and multilateral approach to balanced and stable markets and the voluntary production adjustments have proven beneficial over the past year. It will continue to be a guiding principle in the years to come.
“Nonetheless, the future requires all industry stakeholders to work together, no one can work alone. Collaboration needs to be based on the realities we see before us, to ensure a long-term investment-friendly climate for all energies,” he submitted.
