RIYADH: As the world is moving ahead to achieve sustainable goals, oil and gas producers have an unprecedented opportunity to be at the forefront of the clean energy transition, according to a top official of a global energy body.
Speaking at the 13th International Energy Forum, Mary Burce Warlick, deputy executive director of the International Energy Agency, reiterated that clean energy investments should touch $2 trillion by 2030.
“Despite the emergence of a new energy economy led by low-carbon energy sources, the role of oil and gas will remain prominent, even in a low-carbon energy system,” she said.
Warlick said oil and gas producers can be world leaders when it comes to developing synthetic fuels or hydrogen that are expected to become some of the energy demand drivers of the future.
She further noted that leading economies are trying to accelerate the transition toward lower and medium energy sources to achieve the dual objective of energy security and tackling climate change challenges.
Talking of extreme climate events like heatwaves and earthquakes, she said these are not only affecting individuals and societies but also disrupting the resilience of global energy systems.
“Last year, we have seen an intensification of extreme climate events. Beyond the tragic immediate impacts these events have had on individuals and communities, these phenomena are putting a strain on the resilience of the energy systems, whether they are dominated by hydrocarbons or lower carbon energy,” Warlick noted.
The IEA official said that COVID-19 restrictions will be a key factor that will determine the oil market balance in 2023.
According to her, China will make up nearly half of this year’s oil demand growth after the Asian giant relaxed several restrictions surrounding the pandemic.
In its monthly oil report, the IEA said that oil demand, globally, will rise by 2 million barrels per day, with China making up 900,000 bpd.
The report further added that jet fuel is set to form a central plank in the global demand rebound as air travel has rebounded after the pandemic.
It should be also noted that the IEA projection is short of a forecast of 2.3 million bpd by the Organization of Petroleum Exporting Countries.
