Haitham Al-Ghais, secretary-general of the Organization of Petroleum Exporting Countries (OPEC), reiterated his criticism towards the calls advocating for the abandonment of oil. Al-Ghais emphasized that such suggestions were “wrong” and “unrealistic”. He said oil will continue to play a significant and vital role in global energy markets for the foreseeable future.
Al-Ghais made these statements in an interview with the Kuwait News Agency (KUNA) following a letter signed by U.S. Republican lawmakers addressed to the Executive Director of the International Energy Agency, Fatih Birol. The letter accused the agency of deviating from its primary mission of ensuring energy security and instead becoming an advocate for the green transition.
Read more: OPEC reaffirms 2.25 million bpd growth in global oil demand for 2024
Amin Nasser, CEO of Saudi Aramco, also dismissed the idea of phasing out oil and gas as a mere fantasy. Speaking at the CERAWeek conference in Houston, he argued that a reset in transition strategy is urgently required. Nasser proposed abandoning the notion of phasing out oil and gas and instead investing in them adequately, based on realistic demand assumptions.
Cautioning against risks
In his interview with KUNA, Al-Ghais cautioned against the serious risks associated with halting oil production or usage. He projected that oil would retain its essential role in global energy markets for many years and decades to come. He highlighted its integral contribution to various critical daily activities worldwide, including transportation, travel, energy production, and manufacturing.
Adverse effects of oil disappearance
Regarding the sectors that would be adversely affected by the disappearance of oil, Al-Ghais mentioned transportation by air, sea, and land, emergency vehicles like ambulances, food production, packaging and storage, as well as the manufacturing of medicines, hospital equipment, and medical supplies. He further stated that the production of renewable energy sources, such as wind turbines and solar panels, would also be impacted since they rely on oil products during manufacturing.
Job losses, economic decline
Al-Ghais issued a stern warning about the catastrophic repercussions that would arise from millions of job losses, a slowdown in industrial production, and a decline in global economic growth. He also pointed out that this would exacerbate the energy poverty crisis in many countries where millions of people lack basic electricity needs, such as lighting.
Rational and realistic energy solutions
The OPEC Secretary-General noted that the organization was gaining widespread support from voices advocating for rationality and realistic solutions. He criticized the spread of unfounded misinformation based on ideology rather than scientific foundations. Al-Ghais specifically mentioned reports suggesting a peak in oil demand by 2030, which he believed to be built on ideological grounds that promote the abandonment of oil, gas, and fossil fuels in general.
Global economy set to double by 2045
Al-Ghais anticipated that the global economy would double in size by 2045. He stated that these developments confirmed the world’s need for all available energy sources, as energy demand is expected to increase by 23 percent. He projected that global oil demand would reach 116 million barrels per day by 2045.
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