. Says efforts to reduce carbon emissions ongoing
The Organisation of the Petroleum Exporting Countries (OPEC) says the oil industry will require about $14 trillion in investment from now to 2045 to meet global demand.
This is even as it said that the outcome of the 2023 UN Climate Change Conference (COP28) and its agreement reflected OPEC’s advocacy on pathways towards reducing carbon emissions.
OPEC Secretary-General, Haitham Al-Ghais, stated this while fielding questions from journalists on Thursday on the sidelines of the ongoing seventh Nigeria International Energy Summit (NIES 2024) in Abuja.
Mr Al-Ghais said the investment would be needed for the upstream, midstream and downstream value chain because of the massive rise in energy demand, as oil would continue to represent 30 per cent of the energy mix by 2045.
“The prediction is not only for OPEC alone, but many reliable forecasting agencies have the same views that oil will continue to represent a major share of the energy mix in future.
“We will continue to advocate for continuation of investments in oil as well as the technology required in decarbonising operations. We have many projects coming up in our member countries; we also advocate for investing in renewables.
“We have member countries that are leaders in that aspect who are taking strides in investing in solar, nuclear, wind and others. We will continue to advocate for inclusiveness and open-door policies as we have done in the past 64 years of OPEC creation,” he said.
Mr Al-Ghais also said investment formed part of his meeting with Mr Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.).
The OPEC boss said the NNPC was taking massive strides to create an investment-friendly environment in Nigeria’s oil and gas sector.
The visit saw the NNPC and OPEC pledging to work together to achieve the nation’s aspirations to attract investments and grow production.
Mr Al-Ghais said that OPEC’s vision aligned with that of NNPC as captured in its payoff line ‘Energy for Today, Energy for Tomorrow’.
He said this was because of its inclusive view of energy as opposed to the view pushed in some quarters that some energy sources were bad.
According to him, OPEC will continue to ensure global energy market stability, which is needed to attract investors to Nigeria.
We will continue to advocate for continuation of investments in oil as well as the technology required in decarbonising operations. We have many projects coming up in our member countries; we also advocate for investing in renewables.
Decarbonisation of industry
Regarding oil and gas industry decarbonisation Mr. Al-Ghais, lauded the effective participation of the oil gas stakeholders at COP28 and the successful hosting by the UAE, an OPEC member.
He recalled that the first ever Global Decarbonisation Chatter was signed at the conference, with over 50 oil and gas-producing companies around the world participating.
He said the companies represented around 40 per cent of global production, while five of those companies were from the national oil companies of OPEC member countries.
They pledged to triple renewable energy, reduce methane emissions, and double efficiency, which had never been achieved in previous COPs.
“We are proud that our member country managed to bring about a successful outcome of the COP28, and the wording in the agreement reflects what OPEC has been advocating for so many years.
“OPEC has been calling for a series of multiple pathways to achieve the same objective. We believe that the transition that may happen in one part of the world may not necessarily be a transition suitable for Nigeria or, for example, my own country, Kuwait.
“The beauty of the outcome of the COP28 is that it laid out a whole range of options for countries to follow through its renewable energies, and the role of technology was emphasised,” explained Mr Al-Ghais.
He said technology and investment were encouraged to reduce emissions by developing technology, such as Carbon Capture Utilisation and Storage (CCUS).
He said many pathways in the agreement would enable countries and continents to pursue their own pathway towards reducing emissions.
“The UAE presidency successfully managed to bring all stakeholders to the table, but in previous COPs, unfortunately, the oil and gas industry was excluded; we were not allowed to be at the table.
“COP27 in Egypt was the beginning of our participation in such meetings, while COP28 truly saw effective participation by the oil and gas industry stakeholders, along with others,” Mr Al-Ghais added.
He further explained that OPEC had a special section focusing on expanding dialogue and consumer outreach.
According to him, OPEC believes that producing and consumer countries must have synergy.
“We provide stability in the global energy market through reliable supply; we ensure the market is always balanced and try to create a friendly business environment,” stated Mr Al-Ghais. (NAN)
