Leaders in the global oil and gas sector have expressed support for the energy transition but caution against underestimating the challenges involved. During the World Petroleum Congress in Calgary, some of the largest oil and gas producers highlighted the difficulty of transforming existing energy systems amid increasing demands for climate action. The leaders rejected projections, such as those from the International Energy Agency (IEA), suggesting that oil demand will peak in the coming years. Instead, they emphasized the challenges of meeting rising energy demand while decarbonizing production.
Exxon Mobil CEO, Darren Woods, stated that replacing the current energy system is challenging due to the widespread availability and transportability of oil and gas. He emphasized that the transition will require time and should not be over-simplified. This sentiment was echoed by other industry leaders in attendance. Despite the calls for action on climate change, global oil consumption continues to rise, with demand expected to increase by one million barrels per day next year, according to the IEA.
In addition to addressing climate change concerns, the conference also highlighted public frustrations over rising energy costs. The past year and a half has seen increased anger due to factors such as geopolitical tensions and the impact of government policies aimed at reducing emissions. Over 80 countries, including Canada, have committed to achieving net-zero emissions by 2050. Canada, being the fourth-largest oil producer globally, faces the challenge of balancing climate goals with oil production.
The World Petroleum Congress serves as a platform for influential leaders in the oil and gas industry to discuss key energy issues. While the sector acknowledges the need for change, it is clear that the transition to a more sustainable energy system will be complex and gradual, requiring a careful balance of economic and environmental considerations.
Sources:
– “Oil and gas leaders warn of challenges in transitioning to clean energy” – The Calgary Herald
– International Energy Agency (IEA) projections