No single energy source can meet the world’s growing needs as the economy expands and the population increases, OPEC Chief says….reports Asian Lite News
Global demand for all forms of energy is forecast to rise by 25% through 2045, according to Haitham Al Ghais, Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC).
“By 2045, the world’s energy demand is expected to increase by 25% from current levels, as the global population is projected to grow by approximately 1.6 billion people. This indicates that the world will need more energy in the future,” Al Ghais told the Emirates News Agency (WAM) on the sidelines of the now-running ADIPEC 2023.
Al Ghais added, “No single energy source can meet the world’s growing needs as the economy expands and the population increases. That’s why OPEC supports investment in both oil and renewable energy.
“OPEC will have a dedicated pavilion at the upcoming United Nations Framework Convention on Climate Change (COP28), for the first time, to showcase its work, plans, and support for the transition to a clean energy system and reducing carbon emissions.”
“Despite some setbacks, global growth continues, and we’re optimistic about future oil demand. The global economy is going through different stages, and OPEC will release updated demand forecasts next week,” he continued.
“OPEC is committed to both providing the world with energy and investing in both oil and renewable energy.”
Al Ghais emphasised that several leading countries, notably the UAE, Saudi Arabia, Kuwait, and several African nations, have successfully used technology in the oil industry. “These countries have invested in carbon capture technologies, green hydrogen, and circular economies, and are efficiently working to reduce greenhouse gas emissions.”
He underscored the need for the oil industry to continue contributing solutions to climate change challenges, noting that the UAE is a leading country in reducing carbon emissions and investing in renewable energy.
Al Ghais stated that ADNOC has made significant achievements in reducing carbon emissions, and Masdar has pioneering environmental projects, which are “clear indicators of oil-producing nations’ ability to contribute to environmental preservation and emissions reduction.”
OPEC’s Secretary-General reiterated his organisation’s support for the UAE’s hosting of COP28 and said he expects a productive conference to produce results that benefit the world.
Al Ghais emphasised the importance of ADIPEC 2023, which comes just two months before COP28. He noted that ADIPEC has highlighted the oil and gas industry’s critical role in the fight against climate change.
Regarding OPEC’s vision to expand its membership base, Al Ghais mentioned that he has visited several countries recently, including Azerbaijan, Mexico, Malaysia, and Brunei, and there is also a plan to visit Russia and Brazil.
“These countries possess significant global oil production and capabilities, and OPEC believes in a policy of dialogue and consultation. Therefore, our doors remain open for any country that wishes to join and adheres to the standards outlined in OPEC’s charter,” he noted.
“OPEC regularly talks to oil producers in the Americas, including the United States, Canada, the United Kingdom, and Norway, because the oil market is interconnected and ensuring energy security and price stability is everyone’s responsibility.”
The OPEC Secretary-General also noted that the dialogue extends to major consumers such as India, China, and the European Union, in line with OPEC’s open-door policy for dialogue with all parties.
Mianitaing stable global energy market
Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, participated in the Energy Talk, as part of Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023.
The session addressed the role of OPEC and OPEC+ countries in securing energy supply to maintain the market’s future stability.
Al Mazrouei emphasised that the global energy landscape is constantly evolving. External geopolitical factors pose challenges to stability and security of supply, putting greater pressure on OPEC and OPEC+ countries that control 80.4 percent of the world’s proven oil reserves.
The Minister said: “We believe it is crucial to address eminent challenges and understand the dynamics of the energy market to ensure a stable and sustainable future for the industry. New investments in the sector are much needed to maintain the demand-supply balance at all times.”
He noted that according to an OPEC report, in 2022, global oil trade for crude and products was estimated at 53.3 mb/d, slightly higher compared to 2021, but still slightly lower than pre-pandemic volumes of around 56 mb/d.
Al Mazrouei added: “The UAE is heavily investing in various sources of energy, including renewables, to diversify its energy mix and ensure long-term sustainability. As part of our Energy Strategy 2050, we will invest up to $ 54.5 billion by 2030 to meet the country’s increasing demand for energy.
“The UAE has developed ambitious plans to diversify its energy sources, promote energy efficiency, and embrace emerging energy technologies. We recently updated the UAE Energy Strategy 2050 and launched the National Hydrogen Strategy to reflect higher climate ambition and commitment to net zero. Furthermore, the UAE has high ambitions for the gas sector. This includes investments in natural gas exploration, production, and infrastructure development to meet the increasing demand and contribute to a greener future.”
Notably, the UAE is developing the Ghasha mega-project, the world’s largest offshore sour gas project, that will play a vital role in meeting the UAE’s goal of gas self-sufficiency by 2030 and the rising demand for liquefied natural gas (LNG) exports. It is expected to produce more than 1.5 billion standard cubic feet of natural gas per day.
The Minister emphasised that maintaining a stable global energy market requires collaboration, foresight, and proactive measures.