Climate activists should not only be pushing for a reduction in fossil fuel use, they should be looking at “the bigger picture”. This was stated by Secretary General Haitham Al-Ghais of the OPEC oil cartel during an energy conference in Cairo.
According to him, “all parties need to work together for an energy transition that runs smoothly, is inclusive and helps ensure energy security for all.” Al-Ghais says the oil sector has been suffering from chronic underinvestment for years. Worldwide, $500 billion needs to be added every year through 2045, says Kuwaiti oil executive.
Shell and BP
Several oil companies, such as Shell and BP, have already indicated they will not continue to increase their investments in green energy, and BP has even lowered its climate targets. Al-Ghais sees the UN climate conference COP28 to be held in the UAE later this year as a “new opportunity to move towards inclusive, sustainable and consensus-based solutions to climate change”.
According to the OPEC chief, oil demand will rise to nearly 102 million barrels a day this year, more than the world used before the coronavirus pandemic. Thereafter, oil demand will continue to increase, reaching 110 million barrels of oil per day in 2025.
Keep stable
Al-Ghais says OPEC and partners like Russia, collectively also referred to as OPEC+, are determined to keep the oil market stable. Russia announced this week that it would produce less oil in response to Western sanctions. Saudi Arabia and other major OPEC countries would not like to pump more oil to absorb it, which has caused a sharp increase in oil prices in recent days.
Source: BNR
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