Energy security is central to a prosperous future

Energy security is essential for people, businesses, industries and countries the world over. Oil is central to this, given that today it makes up one-third of the global energy mix. It is important to fully understand the immense benefits that oil, and petroleum-derived products, continue to provide to billions. Societal and economic prosperity depend on them.

These are issues that will be discussed by OPEC and non-OPEC oil and energy ministers, CEOs of national and international oil companies, heads of international organisations, experts and many more at the 9th OPEC International Seminar at the Hofburg Palace in Vienna from 9-10 July. The Seminar has an outstanding record for both the calibre of participants and the elevated level of discussions that take place on leading issues.

Under this year’s overarching theme, ‘Charting pathways together: the future of global energy’, the event comes at a critical juncture for the global energy and oil industries. A time of significant challenges, where questions are being asked about what each energy can offer to the future, what technologies can best deliver emissions reductions and improve efficiencies, and what the world can do to ensure that access to energy and vital everyday products that come from petroleum are available to all.

What is clear is that the world will need much more energy in the decades ahead. We see energy demand rising by 24% by 2050, as economies and populations grow, urbanisation expands, energy-intensive industries like Artificial Intelligence boom, and given the need to bring energy billions who still go without.

For this, all forms of energy are required. OPEC believes a diverse energy mix is the best way forward, but it is vital to appreciate just what each energy source can provide in the decades ahead.

Renewables, such as solar and wind, will continue to significantly expand their role. OPEC Member Countries support their development and are making significant investments in them. Nuclear and hydropower are set to grow in the power generation sector, and there will more electric vehicles on the road.

However, it is important to put this in context. Today, oil and gas make up around 55% of the global energy mix, and with coal this number rises to 80%. This is only a little less than when OPEC was founded in 1960, despite energy consumption increasing more than five-fold over that time.

Oil constitutes 31% of the mix today, and overall demand is expected to grow to over 120 million barrels a day (mb/d) by 2050, an increase of around 17 mb/d from current levels.

This underscores the vital role that oil plays and will continue to play in overall energy security. The platform for safeguarding this now, and in the future, is market stability, which is the core focus of OPEC and its non-OPEC partners in the Declaration of Cooperation. Stability is vital for helping reduce near-term volatility and creating the best conditions for longer term investments. For oil alone, investments of $17.4 billion are required out to 2050. It is vital these are delivered.

OPEC continues to advocate for an all energies and all technologies approach to deliver just and equitable energy pathways for all peoples around the world. Central to this is energy security, alongside the other core imperatives: energy affordability and emission reductions.

Achieving these goals requires realistic solutions, decisive action, sustained investment, and above all, dialogue and close cooperation, to shape inclusive energy pathways for the future. These will all be central to discussions at the 9^th OPEC International Seminar.