Top energy executives disclosed on Tuesday that the transition of oil and gas to renewables will in the long run be complex for many years and this in turn will lead to a sharp energy price volatility as demand and supplies clash.
In a gathering to discuss the future of oil and gas and explore new technologies, the World Petroleum Congress was in contrast to the previous month’s COP26 climate change conference where delegates warned of a climate disaster, while oil executives predicted uncertain future for energy markets.
In a panel discussion, ConocoPhillips Chief Executive, Rylan Lance said the government’s proposals to stop investments in new oil, gas and coal production did not affect the demand side or inflation. He noted that pressure on energy producers and uprising questions about the Organization of the Petroleum Exporting Countries’ spare production capacity are setting up for a complex transition.
The Managing Director of India’s state-run explorer Oil and Natural Gas Corp, Subhash Kumar, sent a warning that consumers and markets are not prepared to make the transition to clean fuels as quickly as some want, noting that the transition will be unsteady and could be disrupted as well.
Spain’s Respol CEO, Josu Jon Imaz explained that families are being affected by energy bills as high prices affect households during a strong global push to move away from fossil fuels. He further said a reliable supply of oil and natural gas must be guaranteed by energy companies as demand will continue in the coming years.
Similarly, several executives also noted that the tension between investing in oil and gas, carbon reduction technologies and responding to investors demanding higher returns and consumers wanting steady supply will be a continuing issue for major oil firms.
