By Adewale Sanyaolu
The Organisation of Petroleum Exporting Countries(OPEC) has urged member countries to focus more on a balanced energy transition rather than concentrate on a single option.
OPEC Secretary General, Mohammad Sanusi Barkindo, stated this in his keynote address symposium: – Oil & Gas in the 21st Century, Charting New Directions for the Oil & Gas Industry after COP26 in conjunction with ‘The Centre for Energy, Petroleum, Mineral Law & Policy in London.
He said the new parameters of the public discourse around the energy transition seem reduced to the question: are you for or against fossil fuels?
‘‘It is perhaps the ultimate false dichotomy. It wrongly inhibits and limits what options are available. It should not be a question about one or the other. The complexity of the challenge calls for an inclusive approach, not the pursuit of a single ‘one size fits all’ panacea. All voices need to be listened to.
Discussions urgently require those most British of characteristics: rational thinking, clear-headedness and common sense. It is important to stress that at OPEC, we understand the move of many developed nations to set net-zero emissions targets. This is their national aspiration. In fact, some developing nations have moved in this direction too. This includes some OPEC Member Countries – Nigeria, Saudi Arabia and the United Arab Emirates –making pledges on net zero. However, it is important to appreciate the massive challenges for developing countries to reach net zero emissions, many of which are acutely focused on priorities such as energy access, living wages, and supplying basic necessities.
The challenges before us are enormous and complex. We have been delivered a stark reminder of this with the recent strains and conflicts related to energy affordability, energy security, and the need to reduce emissions playing out in regions across the world at the end of 2021 and into 2022”.
He warned that focusing on only one of these issues, while ignoring the others, can lead to unintended consequences, such as market distortions, heightened price volatility, and energy shortfalls. He explained that the task ahead requires a delicate balancing act, comprehensive and sustainable solutions, and all voices at the table.
‘‘It is an energy sustainability trilemma, with each piece of the jigsaw having to fit together. This was also a message I heard clearly from the recent World Economic Forum Annual Meeting 2022 in Davos at the end of May. The conversation was of a balanced energy transition, simultaneously progressing the imperatives of economic growth and development, energy security and affordable access, and environmental sustainability.
He canvassed that we need to ensure energy is affordable for all; we need to transition to a more inclusive, fair, and equitable world in which every person has access to energy as referenced in UN Sustainable Development Goal 7; and we need to reduce emissions. Oil has a role to play in each part.