Energy transition needs to be more inclusive, and OPEC+ hands on oil output

Energy leaders from the world’s biggest companies and energy ministers, called on a more inclusive energy transition as they met in Abu Dhabi for the ADIPEC conference; which is the first major in person meeting between the industry since the pandemic.  

The conference which is taking place after COP26 ended has focused its discussions on the energy transition; in which there was an agreement that a transition needs fossil fuels in the mix as the world goes from a point to another. There were voices that said that the west are approaching the transition exclusively. 

The Minister of Mines and Hydrocarbons, Equatorial Guinea, Gabriel Mbaga Obiang Lima, has said that their priorities are different from the west. Meanwhile, the he Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohammad Barkindo, said that the current approach of the West appears to be an exclusive energy transition of the developed world without the rest of the world. 

Global energy CEOs had a different perspective in which they said that their companies could help the world in the transition given that they have the capital and human resources.

“I think we don't get where we need to be without global leadership. But from the UN, there must be a  small team that will lead this transition,” said Vicki Hollub, President and CEO, Occidental who called on the United Nations to lead by having a small team that could hold the transition accountable. 

Hollub said that it's vital to show the Biden administration and others that the oil and gas companies are part of the energy transition already. “We can do what others can't do. We have to get a little ahead of policies otherwise we will never achieve our goal.”

During the conference, energy ministers stressed that for transition to happen, countries must be pragmatic about it. Both energy ministers of the UAE and Oman stressed that OPEC+ does not need to increase output. But said that the group will stick to the plan of 400,000 barrels per day.

“Supply isn’t expected to grow significantly outside of OPEC, there’s a little bit of growth in the U.S, the cards remain in the hands of the OPEC+ group in terms of how much oil they want to add to the market,” said Vitol CEO Russell Hardy. 

Meanwhile, a few CEOs including bp’s Bernard Looney called COP26 “a success” because it shed light on greenhouse gases that were not under the spotlight.

“Methane is now on the global agenda,” he said.