(MENAFN- Gulf Times) The Covid-19 pandemic has imposed huge challenges on the global energy industry, said HE the former Deputy Prime Minister and Minister of Energy and Industry, Abdullah bin Hamad al-Attiyah.
“In the last one and a half years, since the onset of the pandemic, many countries are forced to reduce their industrial output, impacting their power and business sectors. China and India are two major buyers of gas and consumers of energy…and when they don't go to the market to buy...you can see the impact,” al-Attiyah said at a webinar hosted by the US-Qatar Business Council on 'LNG's role in Global Energy Sustainability' on Monday night.
Even before Covid-19, al-Attiyah noted, gas prices had dropped to a very low level.
“It went as low as $4 or $5 /MMBtu. The history of energy prices shows they are cyclical in nature. Prices are driven by demand and supply.”
Al-Attiyah noted that economic recovery in major economies will drive the prices up.
Asked whether lack of investments in fossil fuels due to climate change concerns will lead to a tight oil market, al-Attiyah said,“Most of the targets (set in view of the climate change concerns) are difficult to achieve. As COP18 chairman in 2011, I have seen many projections by experts and analysts' that 2050 will mark the end of the oil era.
“It is difficult to believe. Forecasters build projection based on certain inputs. At the end of the day, it is just a forecast. I had even seen an oil price forecast of $200 per barrel. I know it is very unlikely to happen.”
On electric vehicles' impact on the wider fossil fuel industry, al-Attiyah said,“I believe oil will play a role for the foreseeable future. Even now 1bn people around the world do not have access to electricity. They don't have electricity at home. How then can you talk about providing electric vehicles to them?
“Also, the level of accessibility to electric vehicles in the US or Europe is different from that in other parts of the world – Asia, Middle East or Latin America. They constitute majority of the global population.”
Al-Attiyah highlighted Qatar's commitment to providing the world with“cleaner energy” and said,“We currently produce 77mn tonnes per year (mtpy) of liquefied natural gas. We are the world's largest LNG producer. We are now stepping up production to 126mn tpy, for which works have already started.”
The former Deputy Prime Minister sees a greater role for natural gas for the foreseeable future.
“China and India are two large economies, who require substantial energy for their development needs. Even in our (GCC) region, we have huge shortage of gas.
“We now supply LNG to the UAE, and have already signed a supply agreement with Kuwait. Saudi Arabia too has a big shortage of gas.
“I believe when you take all these into consideration, natural gas, driven by modern technology, will increasingly become the first choice for the whole world. It is the cleanest among fossil fuels… many sectors such as power, industry and transportation will benefit from LNG development.”
Qatar, he said, is also a“big producer” of gas-to-liquids (GTL).
GTL products represent a pioneering innovation to increase the supply of highly-demanded liquid hydrocarbons. GTL products are virtually sulphur-free and have practically no contaminants such as heavy metals or aromatics.
Al-Attiyah, also the chairman of the Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development, however, said the world needs mixed energy – solar, thermal, wind and hydro. All these resources are required to meet the world's increasing needs for energy.
He also touched upon Qatar's investment on a multi-billion dollar LNG project (Golden Pass) in the US in partnership with the leading global energy company ExxonMobil. The project is fast nearing completion.
The session was moderated by international broadcaster Stephen Cole.
The other panellists were Marianne Kah, adjunct senior research scholar and advisory board member, Center on Global Energy Policy, Columbia University; Mohamed Barakat, managing director, US-Qatar Business Council, and Dominic Genetti, president and general manager, ExxonMobil Qatar Limited.
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