KUALA LUMPUR (June 26): Talk of no new investments in oil projects “will only lead to energy chaos”, at a time when the world needs clarity on how to support growing global energy demand while reducing emissions, said Opec secretary general Haitham Al Ghais.

In his leadership address at the Energy Asia 2023 here, Haitham said that unprecedented investments and collaborations are needed to achieve both targets.

“Chronic under-investment in energy, not just oil, but across all energies is putting the viability of the whole energy systems at stake,” Haitham said.

Citing the Opec energy outlook report, the oil and gas industry demands investment requirements of US$12.1 trillion (RM56.6 trillion) from now to 2045 or about US$500 billion each year, he said.

This is as it sees global oil demand rising to 110 million bpd, and still making up about 29% of the global energy mix, as energy demand is seen rising 23% in the same period.

“I see no credible way to address this without utilising all available energy sources,” he said. “For oil, we have heard appeals for producing countries to play a key role in ensuring stable energy supplies.

“At the same time, we have heard calls to end financing in oil projects. The two sentences simply do not fit together. Would you invest if you don’t see security of demand, particularly in an industry where returns could take a decade or more?”

“What has become apparent in the past few years is that references to net zero numbers have sown confusion among investors and policymakers. This is not a positive recipe for producing or consuming countries.

“We need energy clarity, not energy chaos,” Haitham added. “We also need facts, not fantasy to lead us to a just, inclusive and realistic energy transition.”

“We need to recognise that we should be talking about energy transitions with an ‘s’ at the end. I believe it should be a plural… Opec believes each nation and people have their own energy transition pathway,” he said.

“Capacities and national circumstances of developing countries must be taken into account. Addressing energy and climate issues and challenges must put fairness at heart, making sure businesses, government and communities can come together to deliver genuine and real change,” he added.

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