In a tit-for-tat exchange, the Organization of the Petroleum Exporting Countries (OPEC) has countered the latest research on the transition in the oil and gas sector presented by the International Energy Agency (IEA). Accusing the report of seeking to “vilify” the industry, OPEC contends that the IEA’s focus neglects the crucial pursuit of ensuring energy supply for global economies.
OPEC’s rebuttal comes ahead of the OPEC+ meeting scheduled for Thursday, following a delay prompted by resistance from member countries, particularly Saudi Arabia’s push for additional cuts to global oil output.
The IEA’s report, released last week, underscored that only 1% of total clean energy spending currently originates from oil producers, with 60% of that share belonging to four major companies. Describing the sector as “a marginal force” in the energy transition, the IEA specifically criticized national oil companies for not adequately transitioning away from hydrocarbons and relying excessively on carbon capture and storage.
OPEC, in response, accused the IEA of presenting an “extremely narrow framing of the challenges” and downplaying critical issues such as energy security, access, and affordability. The organization rejected the IEA’s proposed framework for aligning oil companies with net-zero targets, deeming it a “tool intended to curtail the sovereign action of oil and gas producing developing countries.”
Tensions between the two entities have escalated in recent months as discussions on shifting global economies away from fossil fuels intensify. The IEA continues to advocate for oil and gas producers to lead the transition to cleaner energy sources, while OPEC defends its efforts to secure energy supply.
OPEC Secretary-General Haitham Al Ghais emphasized the organization’s belief that the focus should be on reducing emissions rather than choosing energy sources. This echoes the sentiment expressed by COP28 president and head of oil and gas producer Adnoc, Sultan Ahmed al-Jaber, who emphasizes the distinction between fossil fuels and emissions in the efforts to tackle climate change.
As the rift between the IEA and OPEC persists, the debate over the role of the oil and gas industry in the global energy transition remains a focal point, with differing views on the urgency and methods required to address the challenges posed by climate change.