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Oil and gas will always play a role in global energy requirements, according to the Undersecretary for Energy and Petroleum Affairs at the UAE Ministry of Energy and Infrastructure.
"There are lot of organisations, individuals and institutions that have their own perceptions on when oil will hit its peak. Some even today believe that we are at that stage. Others believe that over the next 10 to 15 years is when we will see oil hitting its peak. The demand and requirement for oil and gas will always remain. It's not just going to disappear. But investments should continue in the oil and gas sector," Sharif Al Olama, said during a panel discussion at the Global Energy Forum on Monday.
Oil prices fell on Tuesday, extending losses from Monday as Ukraine and Russia headed for peace talks and on fears of low fuel demand in China after Shanghai shut down to curb increasing COVID-19 cases.
Brent crude futures were trading down $1.18, or 1.1 percent, at $111.30 a barrel at 0348 GMT, having dipped as low as $109.97, Reuters reported.
According to Abu Dhabi National Oil Company (ADNOC) CEO, Sultan Ahmed Al Jaber, markets are seen tightening in the near-term, with oil demand up almost 3 million barrels over 2021.
The demand is expected to reach pre-pandemic levels by the fourth quarter of this year, he said at the industry event.
"An unrealistic approach that ignores basic economy will only lead to tighter markets that are only more exposed to geo- political shocks. Divesting from the energy sources that drive the global economy will lead to a systemic supply crunch that erodes economic growth. Put simply, we cannot and must not unplug the current energy system, before we have built the new one," Al Jaber said.
The CEO of UAE's largest oil company also stressed on the need for oil and gas investments alongside renewables.
"In short, the push to divest from hydrocarbons has met a stark reality and we must accept that. While we fully embrace the energy transition, we must recognise that policies should be fully tailored to real-world scenarios, and they should follow the basic rule of progress. If we fail to plan, our plan will definitely fail," he said.
The Atlantic Council Global Energy Forum annually convenes the world’s top energy and foreign policy decision-makers to set the global energy agenda for the year ahead and examine the longer-term geopolitical and geo-economic implications of the changing energy system.
The Forum is being held alongside Expo 2020 in Dubai in conjunction with the 2022 World Government Summit.
(Reporting by Seban Scaria; editing by Daniel Luiz)
