(MENAFN- Emirates News Agency (WAM)) dubai, 22nd may, 2023 (wam) – OPEC Secretary General, Haitham Al Ghais, stressed that the UAE has repeatedly shown climate leadership, particularly through its 'Net Zero by 2050' strategic initiative and investing $40 billion in the renewables industry to date. Astonishing progress has been achieved in a relatively short period of time.
''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 affirmed that the reality is that oil and gas will continue to be an integral part of the energy mix for the foreseeable future. According to OPEC's World Oil Outlook, oil is expected to retain the largest share in the energy mix throughout the outlook period, accounting for almost a 29% share in 2045.
''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 $12.1 trillion 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 been clear in highlighting the very real and dangerous consequences of divestment or underinvestment in the oil industry:
Underinvestment causes market volatility. Underinvestment endangers energy security. Underinvestment imperils economic growth. Underinvestment jeopardizes sustainable development.
On a positive note, he added, it is particularly encouraging that many OPEC Member Countries have heeded the call to invest in all sectors of the oil value chain. For example, ADNOC is ramping up production capacity to 5 mb/d by 2030, Saudi Aramco is taking steps to increase to 13 mb/d by 2027, Kuwait to 4 mb/d by 2040, and Iraq to 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.''