OPEC says ceasing investments in oil & gas is dangerous, unrealistic scenario
BAKU, Azerbaijan, July 6
By Leman Zeynalova – Trend:
There have recently even been calls for investments in oil and gas to be discontinued, which is a dangerous and unrealistic scenario, Trend quoted OPEC Secretary General Mohammad Sanusi Barkindo as saying at the opening ceremony of the 20th Nigeria Oil and Gas Conference and Exhibition, July 6.
“The fact is, however, that oil and gas have an important role to play in the energy transition. Let me be clear, OPEC supports the need to reduce emissions, bolster efficiency and embrace innovation, but we must be aware of the risk we run of not adequately investing in the future of this industry. We are already dealing with the harsh impacts the COVID-19 pandemic has had on investment, which declined by 30% in 2020.
If this were to continue, we could see demand exceed supply, posing a significant energy security risk to both producers and consumers. And this, of course, could result in knock-on effects for both the global economy and geopolitics,” he said.
Barkindo said one must also consider that, although many of OPEC’s Member Countries have made good progress in diversifying their economies, many of them rely primarily on revenue from their oil and gas assets to support their economic and social development.
“Let’s face it, there is simply not a “one size fits all” solution to addressing climate change. Different countries around the world have varying capabilities and diverse needs. Thus, reducing emissions has many paths, as set out by the Intergovernmental Panel on Climate Change (IPCC), and we must consider all of them as viable options. Additionally, when considering the scale of the energy transition, we must harness all available energies.
The oil and gas industries have much to offer in this regard, including some of the world’s most cutting-edge technologies and advanced innovations, which can all be leveraged to promote a lower carbon future.
From the perspective of science and innovation, we believe technologies such as carbon capture, utilization and storage (CCUS), hydrogen and other technologies are viable options for reducing the carbon footprint,” added OPEC secretary general.
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