Call for a realistic balance of fossil fuels in a greener world

The world requires energy predictability in order for it to achieve its growth ambitions - and that means not letting investment in fossil fuels fall behind. This was one of the key messages to emerge from a Ministerial panel session titled Ensuring energy security for nations and industry in a VUCA world.

Some of the industry’s prime thinkers agreed there needed to be a more realistic outlook so it was about renewables and hydrocarbons not or as the world moves towards a transition that doesn’t disrupt supply.

Addressing the Plenary Theatre, Honorable Minister of Petroleum and Natural Gas, Housing and Urban Affairs, Shri Hardeep Singh Puri, underlined the need for predictability of supplies as the world tackles the energy trilemma. “What we really need is a more balanced and realistic dialogue, and I think that is what we are going to do,” he said yesterday.

Honorable Vickram Bharrat, Minister of Natural Resources, Republic of Guyana - a country now prospering because of recent oil discoveries - said it was easy to be carried away by certain targets within the transition. “But can we achieve those targets and when we have the investments or the resources to achieve those targets, at some point in time, we will have come to the realisation that the argument is no longer or, but it is and solar, and green hydrogen and fossil,” he said.

He highlighted tech to take care of the emissions that made fossil fuels detrimental and called for protecting forests that act as carbon sinks. “A balanced approach is needed,” he said. “There are hundreds of millions of people living in this world without electricity…why should we keep them in the dark because we are so consumed with the environmental perspective. “Every source of energy will be required to be able to deliver and fuel the economic prosperity and growth that we all aspire.”

His Excellency Haitham Al Ghais, Secretary General of OPEC, said the impact and meaning of world energy security had been underestimated for so long and “tossed around as a simple term”.

“I believe, simply, it is the cornerstone of economic growth and prosperity for all nations of people around the world, for societal advancement and development, education, the clothe we wear. Everything is ultimately delivered from having a secure, affordable, reliable, uninterrupted source of energy, be it oil and gas, renewables, coal…this is how mankind has prospered and developed over all these years. So we have to stop pointing fingers, vilifying the oil and gas industry…we have to face reality and be pragmatic about dealing with a realistic solution. We all have the same problem, it’s just different pathways,” he added, citing dialogue as crucial to “really overcome all these challenges”.

“It’s important when we talk about energy security, not to underestimate the importance of a stability and how we can ensure that stability.”

HE Puri said that “there is not a shortage of energy in the world” it was about the amount of energy being made available - and that many of the energy crises faced by the world were “self inflicted”.

“I am encouraged by my belief that there is a lot of goodwill around and all the people decision making will not allow problems which are causing anxiety now to exacerbate.” The Indian minister also stressed that alongside talk of transition to green sustainable fuel uses should be investment in “traditional fossil fuels”.

This was echoed by His Excellency Saad bin Sherida Al Kaabi, Qatar’s Minister of State for Energy Affairs & Cabinet Member. “We looked at basic supply and demand and the growth of demand,” he said in regard to his country’s gas provision. He went on to highlight the need for continued investment to keep fossil fuels flowing in the face of the intermittent electricity that could come from renewables such as wind and solar, “when people talk about that as the sum of all solutions”.