Executives agreed that global energy markets are more than ever open for business and competing for foreign investments
ABU DHABI, United Arab Emirates, November 13, 2019/ -- The African Energy Chamber (https://EnergyChamber.org) participated in the Oil & Gas 4.0 Strategic Roundtables at ADIPEC
in Abu Dhabi this week. During the “Energy trends, policy formation and
geopolitical factors affecting the global oil and gas industry”
roundtable, the Chamber provided a critical African perspective to the
global debate on energy transition.
Key issues addressed by
global CEOs from across the world included the impact of population
growth and decarbonization on the global energy demand and future sector policies. Highlighting global dynamics in supply and demand,
participants insisted on the need to meet growing demand for heavier
petroleum products and crude, which shale oil cannot deliver. Similarly, executives agreed that global energy markets are more than ever open
for business and competing for foreign investments.
A major
concern shared by leaders at ADIPEC includes growing criticism made to
the industry by the civil society at large in light of climate change.
Coupled with a depressed oil prices environment, this sentiment is
negatively impacting financial capital markets performances for the
sector and overall growth projections. Capital markets are going through a tough time for instance, growing at only 3 to 4% as opposed to 15% a
few years ago.
As climate concerns add pressure on the sector,
participants urged all stakeholders to find ways to engage the broader
society and challenge the insular nature of the oil & gas industry.
All parties agreed that the sector is doomed if it fails to engage
women, younger generations and the society at large around inclusive and sustainable growth.
Bringing its own perspective to the debate,
the Chamber insisted that Africans should not apologize for wanting to
develop their fossil fuels despite rising global concerns about climate
change. Chamber representatives reminded everyone that Africa remains
one of the world’s lowest emitter of carbon emissions, has over 650
million people who live without access to electricity, and cannot
develop as a continent without oil & gas. As a result, the
imperative of reducing poverty and creating opportunities through energy in the developing world was one of the key take away from the debate.
The Chamber notably voiced Africa’s determination to build an inclusive
industry it can be proud of and which does not rely on aid but on sound
business practices, deals and investments. It joined stakeholders in
voicing concerns about the lack of inclusion of younger generations in
the industry and the need to make oil & gas more attractive for
young talent.
Concluding the debate, executives and experts
agreed that real tensions are arising from climate change problems. They are forcing the industry to innovate and find more efficient and
low-emitting solutions to develop hydrocarbons and invest in new
technologies like hydrogen and energy storage. All parties agreed on the challenge of adequately addressing two issues at once. First, the need
for near-term opportunities like cost-reduction and industry partnership to deliver opportunities for all, and second the long-term need to
address energy transition and help solve climate change problems.
