Arab ministers are urged to face the harsh reality.
Chronic underinvestment in conventional energy threatens to leave the planet with insufficient spare production capacity for oil and petroleum products as well as gas, say energy ministers from the two largest oil-producing members of OPEC.
Senior energy officials from Middle Eastern countries have long warned of the lack of investment and the negative consequences this could have on the global economy recovering from the “pandemic”.
“We must wake up and face the harsh reality,” urged the Saudi Minister of Energy (KSA), Prince Abdul-Aziz bin Salman, at the international forum “Future of Aviation” in Riyadh. “The world is running out of available energy capacity at all levels. »
The KSA energy director responded to inquiries from his American colleagues, where, despite all the efforts of the White House and the authorities, gas station prices set another anti-record – the average price of gasoline in the United States reached $4.37 per gallon. He is convinced that the high prices of gasoline as well as diesel and kerosene are due to the lack of investment in the refining industry.
Prince Abdulaziz advises rethinking the general enthusiasm with which the West has recently embarked on a forced transition to “clean” energy, which relies on phasing out fossil fuels and replacing them with alternative energy sources renewable. It is under pressure from the public, who until very recently only wanted to hear about clean energy, that banks have been extremely reluctant to finance new conventional energy projects, which has led to the dire situation current.
A further decline in investment in conventional energy, assures the Saudi energy minister, will lead to a further increase in the imbalance between oil supply and demand in the direction of demand.
The host of an international energy conference in Abu Dhabi, the Minister of Energy of the United Arab Emirates (UAE), Suheil Al Mazroui, has reserved an even more unpleasant surprise. He warned, reports Oil Price, that OPEC+ will not be able to guarantee a sustainable and sufficient supply of oil to the global economy.
Suhail Al-Mazroui attributed the extremely high volatility in oil markets in recent weeks to individual buyers refusing to buy certain grades of oil, referring to the refusal of many Western companies to buy Russian oil. He refused to accept any responsibility for the high fuel prices, which the West blames not only on Russia, but also on Arab oil-producing countries, which would refuse to increase their oil production.
The fact that these warnings come from the energy ministers of the only two oil-producing countries believed to have more or less sufficient spare production capacity gives them particular weight and prompts thought. Despite pressure from the West, Riyadh and Abu Dhabi refuse to increase oil production, arguing that the market is now balanced. As for the record volatility, it is explained by the sector’s underfunding and geopolitical factors. Neither of these two reasons can be influenced by Saudi Arabia and the United Arab Emirates.
Avic translation for International Network
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