Opec chief tells climate activists to ‘look at the big picture’ after ‘years of chronic underinvestment’ in oil
- His comments come amid a shift among some Western governments and companies regarding fossil fuels, after energy prices surged over the Ukraine war
- After ‘years of chronic underinvestment’, the oil industry needs US$500 billion of investment annually until 2045, said Opec’s secretary general
Opec’s top official urged countries to invest much more in oil to meet the world’s future energy needs and said climate policies need to be more “balanced and fair”.
“It is imperative that all parties involved in the ongoing climate negotiations pause for a moment; look at the big picture,” Haitham Al-Ghais, secretary general of the Organization of Petroleum Exporting Countries (Opec), said on Sunday at an energy conference in Cairo. They must “work towards an energy transition that is orderly, inclusive and helps ensure energy security for all”.
Opec’s Al-Ghais said the oil industry had been “plagued by several years of chronic underinvestment”. It needs US$500 billion of investment annually until 2045, he said.
The United Arab Emirates’ hosting of the COP28 climate summit in late 2023 will “serve as a fresh opportunity to explore inclusive, sustainable and consensus-based solutions to climate change”, said the secretary general, who’s from Opec member Kuwait.
The UAE, also part of Opec, has appointed Sultan Al Jaber, head of national oil and gas firm Adnoc, as president for the summit. While that has caused some controversy, Al Jaber has said that hydrocarbon producers must be at the forefront of climate negotiations if the world is to transition to cleaner energy while also ensuring that fuel prices remain affordable.
