Oil’s cheerleaders missing the point

The head of Saudi Aramco, Khalid Al-Falih, delivered a stinging rebuke to proponents of Peak Oil — arguing that there will be a renaissance for petroleum as new realities reshape the energy world. Among these, he said, is “an increasing abundance of oil and gas supplies”, serving to counter concerns about oil output and energy security.

At the same time, Al-Falih took a swipe at the “faltering pace” of development of various alternative-energy sources, including renewables and nuclear. He claims that rather than experiencing scarcity, which many have predicted, the Middle East has adequate oil and gas reserves.

He argues that this means the world has “more time” for a gradual but meaningful development of renewable energy, ­allowing the industry to overcome technical, economic, environmental and consumer-acceptance obstacles, and to compete on a level playing field.

Representatives of half a dozen Opec nations attending the WPC outlined steps their countries are taking towards renewable energy. “Increasing climate effects are an unquestionable reality,” says the Emir of Qatar, Sheikh Hamad bin Khalifa. “Developing clean and renewable resources is a goal fully supported by oil and gas exporters.”

It is hardly surprising that greater investment in oil production in the region is still a top priority. Bahrain is undertaking several new projects, while Kuwait plans to invest about $180bn over the next two decades in oilfield development.

However, oil ministers from both countries also talked about solar projects, which although relatively small-scale, do include big expansion plans. Many large companies in the region are showing a considerable interest in renewables.

Even oil-rich Saudi Arabia is poised to become a solar power­house, as it looks to broaden its sources of supply. But it should also remember that countries that have embraced renewables have not done so simply to support environmental priorities, but also to assist with economic recovery and the creation of jobs, which are flowing from clean-tech industries.

EU plan creates nervous energy

Europe’s offshore wind industry is likely to be a little nervous as it waits for the European Commission’s

post-2020 energy road map on 13 December.

The document will outline ways to decarbonise the bloc’s energy systems up to 2050, with a clear focus on 2030. However, it seems one of the road-map scenarios theorises that the cost of wind will rise steeply after 2030.

European commissioner Günther Oettinger was giving little away as he addressed an oil-and-gas-industry audience at the World Petroleum Congress in Qatar — other than that he sees gas as a bridge between coal and cleaner energy sources.

Oettinger says an increase in renewable-energy sources will be augmented by natural-gas power generation. But he adds: “Despite being the cleanest fossil fuel, gas still emits carbon dioxide and we must try to reach our targets in reduction of greenhouse gases.”

On the basis of that comment, things look pretty positive for renewables. But even so, sleepless nights about what happens beyond 2020 are far from over.

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