The CEO of Royal Dutch Shell, Jeroen van der Veer, has said that the hydrocarbons sector must keep investing in future supply as demand for energy is going to double by 2050.
“If price volatility causes a slowdown in investment in the oil and gas industry then expansion of capacity happens too slowly. When we come out of this crisis energy demand will surface again. Too low investment means the next price spike is to come,” Van der Veer said at the World Oil Companies Congress in Abu Dhabi.
The Shell CEO also stated that the hydrocarbons industry will never be able to meet future demand as the world’s population grows and the average standard of living will be raised much higher.
“In 2050 not only will you have around 3 billion more people, but their higher standard of living will mean that they will use a much bigger amount of energy. Energy demand will double between now and 2050,” Van der Veer said.
“The existing oil and gas industry as you see it now can never supply the world with this much energy. So it is not a question of shall we turn to unconventional oil and gas, or wind and solar power or nuclear, we will need it all,” he added.
Van der Veer also said that there is no “silver bullet” to solve the problem of higher CO2 emissions that increased global energy consumption would inevitably bring. He called on greater cooperation between governments to solve the problem, but also warned that protectionism could result from countries trying to safeguard energy supplies.
