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OPEC Chief Claims 'Oil Era Far From Over' in Recent MEES Commentary

OPEC Chief Claims 'Oil Era Far From Over' in Recent MEES Commentary

Apr 26, 2024

OPEC Chief Claims 'Oil Era Far From Over' in Recent MEES Commentary

In a recent op-ed for the Middle East Economic Survey (MEES), OPEC Secretary General Haitham Al Ghais expressed his view that the end of oil is not imminent, despite contrary narratives. Al Ghais emphasized the continued growth in energy demand and cautioned against energy policies that may lead to energy chaos if they overlook oil's role in the global energy supply.

Al Ghais expressed concern over the "worrying trend of narratives" using phrases like "the end of oil," which he believes could drive energy policies that fail to acknowledge the critical role of oil and potentially cause energy supply disruptions. He posed the question in the MEES article, "What if investments in supply fall as a result, but demand for oil keeps increasing, as we are seeing today?"

"The reality is that the end of oil is not in sight," Al Ghais stated, a view that stands in stark contrast to predictions from organizations such as the International Energy Agency, which expects oil demand to peak by 2030. The Organization of the Petroleum Exporting Countries (OPEC), in which Al Ghais serves as Secretary General, anticipates that oil use will continue to rise in the coming decades.

Al Ghais pointed out that despite over $9.5 trillion invested in transition costs over the past twenty years, renewable energy sources like wind and solar currently provide just under 4% of the world's energy needs. Additionally, he noted that electric vehicles (EVs) have only achieved a global penetration rate of between 2% and 3%.

"The reality is that many alternatives cannot replace oil at the necessary scale, or are unaffordable in many regions," Al Ghais wrote, highlighting the challenges that alternative energy sources face in meeting global energy demand.

MEES Article

Reuters Article


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