In a recent op-ed published in the Middle East Economic Survey (MEES), OPEC Secretary General Haitham Al Ghais challenged the notion of an impending end to the age of oil. Al Ghais emphasized that the pace of energy demand growth necessitates continued reliance on oil, asserting that alternatives currently lack the capacity to replace it on the required scale.
Al Ghais expressed concern over prevailing narratives suggesting the demise of oil, cautioning that such perspectives could lead to energy policies that exacerbate instability in the energy sector. He highlighted the potential consequences of decreased investment in oil supply amid rising demand, underscoring the ongoing significance of oil in meeting global energy needs.
Contrary to projections by bodies like the International Energy Agency (IEA), which anticipate a peak in oil usage by 2030, OPEC anticipates continued growth in oil consumption in the coming decades.
Acknowledging environmental concerns, Al Ghais pointed to investments by the oil industry in technologies such as carbon capture utilization and storage, clean hydrogen production, and direct air capture. He argued that these efforts demonstrate the industry’s commitment to reducing emissions while sustaining oil production.
Al Ghais also addressed the limitations of alternative energy sources, noting that despite significant investment, wind and solar energy combined contribute less than 4% to the global energy mix. Similarly, electric vehicles remain a niche market, with a global penetration rate of only 2% to 3%.
In conclusion, Al Ghais emphasized the ongoing necessity of oil, highlighting its irreplaceability at the required scale and its affordability in many regions.