The current energy crisis is a wake up call for the need to invest more in the sector to avoid another energy supply crunch, Abu Dhabi National Oil Co. (ADNOC) Chief Executive Sultan al-Jaber told an energy conference on Oct. 20.
The oil minister of India, the world's third biggest oil consumer and importer, echoed Jaber's comments.
"Yes, a wake up call. That there is not enough investment. In addition to that is also the fact that the transition to green energy is also imposing a cost," said the minister, Hardeep Singh Puri.
India is facing its worst power crisis in years and has been hit hard by rising oil prices, with local fuel prices surging to record high and its trade deficit ballooning to the highest in at least 14 years.
India imports 85% of its oil needs and buys most of this from the Middle East producers.
The UAE is investing boosting its oil and gas production, Jaber said, adding that ADNOC would remain a trusted oil supplier to India.
Puri said high energy prices are impacting global economic recovery, stoking inflation and logistics costs. "If prices are not brought under control, global economic recovery could be fragile".
Oil prices have to be predictable, dependable and stable, Puri said, adding that high prices may also impact the producers in the long run.
India's oil secretary Tarun Kapoor said: "OPEC can very easily raise production and gain confidence of consumers. If the sellers don't come to help then the reliability goes away."
Both Jaber and Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman said the world will continue to need fossil fuels despite the transition to cleaner energy sources.
Prince Abdulaziz said there was a lack of anticipation that the world economy would grow as fast as it is doing now.
"People all of a sudden woke up to the reality that they are running out of everything: they ran out of investments, they ran out of stocks and they ran out of … creativity in trying to be attending to real solutions that address real issues," Prince Abdulaziz told the CERA Week India Energy Forum.
Recommended Reading
Range Resources Holds Production Steady in 1Q 2024
2024-04-24 - NGLs are providing a boost for Range Resources as the company waits for natural gas demand to rebound.
Hess Midstream Increases Class A Distribution
2024-04-24 - Hess Midstream has increased its quarterly distribution per Class A share by approximately 45% since the first quarter of 2021.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.