OPEC Secretary General, Haitham Al Ghais, emphasized that the UAE has demonstrated significant leadership in addressing climate change, particularly through its strategic initiative of achieving ‘Net Zero by 2050’ and its substantial investment of $40B in the renewable energy sector so far. Impressive advancements have been made within a relatively brief timeframe.
‘’The President of the UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan, announced at the beginning of the year that 2023 will be the ‘Year of Sustainability.’ This reflects this country’s longstanding commitment to sustainable practices and international cooperation to address the challenges of our times,” said Haitham Al Ghais at the opening of the 30th Annual Middle East Petroleum and Gas Conference (MPGC 2023), which is taking place on 22-23 May 2023 in Dubai. The culmination of the “Year of Sustainability” will be Dubai’s hosting of the COP28, which represents a moment of tremendous pride for OPEC.”
‘’We have followed with interest the calls by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President-designate, for a positive, pragmatic and above all, realistic approach to the climate challenge.”
‘’Our Organization has a long history of supporting environmental issues and sustainable development. We have been directly involved in the evolution of the United Nations Framework Convention on Climate Change (UNFCCC), from the UN Intergovernmental Negotiating Committee in 1990 to the present day.”
He confirmed that the fact remains that oil and gas will remain a crucial component of the energy combination for the foreseeable future. As per OPEC’s World Oil Outlook, oil is projected to maintain the highest proportion in the energy mix throughout the forecasted period, representing nearly 29% by 2045, according to WAM.
‘’The global economy in 2045 is expected to be double the size it is today. The global population is set to increase by 1.6 billion people between now and 2045. As a result of these global demographic and economic changes, energy demand is forecast to increase by a significant 23% in the period to 2045. Such an increase in demand necessitates adequate investment in our industry. The global oil sector will need cumulative investment of $12.1T through to 2045. Investment is also urgent to account for annual decline rates, which amount to about 5% in our industry.”
‘’Despite the urgent need for investment, we have heard disheartening calls from some quarters to divest from hydrocarbons.”
OPEC has consistently emphasized the serious and potentially harmful repercussions of divestment or insufficient investment in the oil industry:
Insufficient investment contributes to market instability.
Insufficient investment poses risks to energy security.
Insufficient investment hampers economic growth.
Insufficient investment undermines sustainable development.
In a positive development, he noted with satisfaction that numerous OPEC member countries have responded to the call by investing in all sectors of the oil value chain. For instance, ADNOC is actively increasing production capacity to reach 5 million barrels per day (mb/d) by 2030, Saudi Aramco is implementing measures to raise production to 13 mb/d by 2027, Kuwait aims to achieve 4 mb/d by 2040, and Iraq has set a target of 6 mb/d by 2027.
‘’OPEC Member Countries are also investing significantly in the downstream sector. Recent examples include ADNOC’s Crude Flexibility Project at the Al Ruwais refinery here in the UAE, the Dangote Refinery in Nigeria and the CFP project and Al Zour refinery in my home country of Kuwait.”
‘’I would like to conclude my remarks by underscoring OPEC’s appreciation for the UAE’s leadership role in the energy sector, tackling the climate challenge, and bringing stakeholders together at COP28. This mirrors the constructive role the nation plays in OPEC and OPEC+, acting as a builder of consensus and forger of cooperation, under the able leadership of the UAE.”
“On behalf of the entire OPEC Family, I would like to sincerely thank the UAE for this contribution to making OPEC the successful and vibrant Organization that it is today.”
