OPEC Secretary General Mohammed Barkindo commented on the energy transition and the future for oil and gas during a talk at the International Petroleum Technology Conference in Dammam.
“We have been in the forefront with the rest of the industry in advocating for an all-inclusive transition,” he said, noting that the transition would not be a move from “point A to point B”, but would require a mix of energy sources.
“In our 2019 outlook, we do not see oil and gas being challenged by alternative enrgy forces, what we see is a continuous growth, not only of energy, to the tune of 25% until 2040, but also in terms of demand for oil and gas, by 2040 we continue to see these two sources of energy accounting fo more than 50% of the energy landscape,” he continued, referring to the organisation’s annual World Oil Outlook.
Barkindo said that the growing population, further development from developing countries, and the doubling of the global economy by 2040 will “require the industry to invest heavily in a predictable manner to mee this growth in demand,” while taking into consideration environmental concerns.
“Companies are facing severe headwinds in accessing funding in [the oil and gas industry], which is alarming,” he added. He noted that the narrative surrounding the energy transition should shift, calling for a “dispassionate review” of the transition from policymakers and industry professionals.
“In this transition, there is a divide been those who have and those who have not,” Barkindo said, noting energy poverty as a growing challenge which would require a mix of energy sources.
