Fossil fuels will continue to play an important role in global energy security despite the sharp growth in renewable energy basket to de-carbonise the globe, said Igor Sechin, Chief Executive Officer of Rosneft, the Russian oil major.Â
While speaking at the recently held XVII Verona Eurasian Economic Forum, he highlighted projections from Bank of America, which estimate that economic growth in developing countries and the expansion of data centres will drive an annual increase of up to 9 million barrels of oil equivalent per day (boepd) in global energy consumption.Â
Meanwhile, renewable energy production is expected to grow by only 2 million boepd, underscoring the ongoing reliance on oil and gas, he emphasised accounting to a statement.
By 2050, global oil demand is forecasted to rise to 20 million barrels per day (bpd), supported by rising consumption in India and other developing nations, he said.
He further emphasized the need for significant investment in the energy sector.Â
According to OPEC, annual investments in oil production must increase by 50%, reaching $550 billion by 2050, to meet market demands and compensate for the depletion of conventional reserves.Â
He noted that maintaining current oil production levels requires replacing 11% of global production annually, highlighting the growing importance of hard-to-recover reserves.
He also questioned the feasibility of achieving net-zero targets, noting that renewable energy capacity would need to increase tenfold by 2050 to 35 terawatts—a figure over four times the world’s current installed energy capacity.
He also pointed out that manufacturing electric vehicles produces 35–50% more emissions than traditional vehicles, primarily due to battery production, raising doubts about the efficiency of current technologies which are called green.Â
On a geopolitical level, Mr Sechin highlighted Russia’s contributions to stabilizing global energy markets through initiatives like OPEC+, which helped increase market stability and protect producers’ interests, according to the statement.
He also reaffirmed the strategic importance of Eurasian cooperation, noting that Russia’s resource base, valued at $100 trillion, plays a critical role in ensuring long-term energy security for the region and beyond.
Published – December 07, 2024 05:04 pm IST
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