Nigeria: Renewable Energy Unlikely to Overtake Oil in Decades - Barkindo

19 June 2019

Abuja — The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr. Mohammad Barkindo, has said the upcoming meeting of the group and its non-OPEC member allies led by the Russian Federation will deliberate more on keeping the global oil market balanced and stable in the midst of threatening pressures.

Mohammad, said this at the recent third Dundee Energy Forum held at the University of Dundee in the United Kingdom. He also explained there are no reputable outlook that have said renewable energy sources would overtake oil and gas in the decades ahead.

OPEC and its non-OPEC allies would meet on June 25 and 26.

To this end, Mohammad stressed that the meeting would allow them a chance at evaluating the existing and growing dynamics in the oil market.

"It is also important for me to underscore here that the commitment of OPEC and its non-OPEC partners in the 'Declaration' to a balanced market and a sustainable stability remains our key objective.

"We are responsive and alert to shifting market dynamics, and adaptable to ensure that we remain on track," said Mohammad, in his lecture at the forum.

He further stated: "We realise that many underlying risks remain. We are closely monitoring oil market developments and the economic bearishness that has been prevalent in markets in recent weeks, with major challenges and uncertainties related to ongoing trade negotiations, monetary policy developments, as well as geopolitical issues.

"This will all be discussed in detail at the upcoming OPEC ministerial conference and the OPEC and non-OPEC ministerial meeting, where our minds will be focused on market balance and stability, in the interests of producers, consumers, and the world at large."

"This historic commitment to cooperate and make a difference, for the benefit of all, underscores how OPEC sees the future. We can no longer work in silos; we can no longer operate on divergent paths; we can no longer see our futures in polarised terms," he added.

Mohammad, also noted that OPEC understood that the foundation for investment, growth and economic diversification for economies can only come through balance and stability in the oil market, and was in this regard fully committed to investments across the whole industry value chain.

Speaking about energy transition and OPEC's commitment to same, Mohammad, explained it did not mean oil and gas would cease from being used by the world but that their use would be more efficient and suitable to the environment. He also noted that renewable energy sources would not replace oil in decades ahead.

"The issue of investments is critical in any talk of an energy transition and diversification. For all investments, the focus has to be on a stable environment and a level playing field.

"Firstly, many OPEC member countries have great sources of solar and wind, and we are seeing huge investments being made in the field of renewables. And secondly, we do not see any reputable outlook projecting that renewables will come anywhere close to overtaking oil and gas in the decades ahead," said Mohammad.

According to him: "Given our outlook, as well as many others carrying similar forecasts, it is also important to broach the issues of policies and technologies. We need to continually look to develop, evolve and adopt cleaner energy technologies, as well as all-inclusive and non-discriminatory energy policies, that enable us to meet expected future energy demand, in a sustainable and ever more efficient manner."

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