Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
OPEC said that an International Energy Agency (IEA) report suggesting that investors should not fund new oil projects to curb emissions could lead to oil-price volatility if it is acted on.
The IEA on May 18 said investors should not fund new oil, gas and coal supply projects if the world wants to reach net-zero emissions by mid-century, in its starkest warning yet to curb fossil fuels.
The research division at OPEC, whose 13 members sit on 80% of the world’s crude oil reserves, produced an internal briefing document on the IEA’s report, a copy of which was seen by Reuters.
“The claim that no new oil and gas investments are needed post-2021 stands in stark contrast with conclusions often expressed in other IEA reports and could be the source of potential instability in oil markets if followed by some investors,” OPEC’s report said.
RELATED:
IEA Report: Achieving Net-Zero Necessitates Huge Job, Investment Cuts for Fossil Fuels
OPEC also said a scenario in the IEA’s report could affect how companies invest and limit demand for oil. The producer group currently forecasts oil demand will recover strongly this year and continue rising until the 2030s.
“While the NZE (net zero) Scenario seems overly ambitious in terms of assumptions and results, it will certainly influence investment decisions, which may curb demand [growth} for fossil fuels such as oil and gas, as many policymakers and oil and gas companies use the IEA’s scenarios for their strategic planning,” OPEC said.
OPEC made the further point that for many developing countries, the route to net-zero emissions without international help was not clear and they would need technical and financial support to get there.
“Without greater international cooperation, global CO₂ emissions will not fall to net zero by 2050,” OPEC said.
Recommended Reading
Gevo Appoints Katie Ellet to Board of Directors
2024-01-07 - Gevo appointed Katie Ellet, who has held a variety of leadership roles in the chemical and energy industry, including serving as president of hydrogen energy and mobility for North America at Air Liquide.
ArcLight Creates AlphaGen to Manage Firm’s US Power Infrastructure Portfolio
2024-01-11 - Alpha Generation, owned by ArcLight Capital Partners, will manage one of the U.S.’ largest power infrastructure portfolios with annual revenues of about $2 billion.
APA Promotes Stephen J. Riney to President
2024-01-10 - Stephen Riney joined APA in 2015 and has served as the company’s executive vice president and CFO.
Advent Technologies Appoints Naiem Hussain to CFO
2024-01-15 - Hussain is replacing Kevin Brackman as Advent Technologies Holdings Inc.’s CFO, who resigned from the position on Jan. 5.
Vast Appoints Two Additional Directors to Board
2024-01-12 - Vast’s appointment of Peter Botten and Tom Quinn brings the board’s recently expanded size to seven members.