The transition toward new energy must be done in a realistic manner that takes into account the critical need for energy supply stability and the ever-growing energy demands of the world economy, Haitham Al Ghais, secretary general of the Organization of the Petroleum Exporting Countries (OPEC), said here on Monday.
The transition toward new energy must take on a holistic approach that includes the utilization of all energy production resources while also ensuring energy access to billions of people who lack modern energy services, Al Ghais said during his leadership address at the Energy Asia 2023 conference.
"The importance of market stability is not only important for the short term, it is critical for the longer term too. In OPEC's world oil outlook, we see global energy demand increasing by 23 percent through 2045 and I see no credible way to address this without using all available energy sources and with energy market stability as a guiding light," he explained.
"Gas, hydro, nuclear, hydrogen and biomass will expand but it is clear that oil will remain an integral part of the mix," he said.
Al Ghais noted that global oil demand is expected to rise to 110 million barrels a day by 2045, with the fuel making up 25 percent of the energy mix by then with an expected global population of 9.5 billion, making it even more critical to redouble efforts at providing energy security while reducing emissions.
"There remains a critical need to bring modern energy services to those billions that continue to go without basic energy access in many parts of the world including here in Asia. While we must continue to provide energy to the world, we must also recognize the need to continually reduce emissions and to continue to decarbonize," he said.
Meanwhile, Daniel Yergin, vice chairman of S&P Global, said in his opening remarks at the conference that without energy security, energy transition will be very difficult to achieve, urging a rethinking of the environmental, social and governance (ESG) concept.
Acknowledging the role hydrocarbons will continue to play in filling global energy demands, Yergin urged a dynamic and inclusive approach to energy transition, using reliable hydrocarbon fuels while working toward environmentally friendly policies.
"While the balance in the overall energy mix will change, oil and gas will continue to be major parts of global energy supply, not for years to come but for decades to come. But the future of hydrocarbons will be more mixed and intertwined with increasing emphasis on emission abatement and carbon management," he said.
The conference will run from Monday to Wednesday in Kuala Lumpur with the theme of "Charting Pathways of a Sustainable Asia," bringing together industry leaders, experts, investors, and policymakers to deliberate how Asia can accelerate low carbon pathways and unleash new potentials for the region's energy sector.
（Picture: Veer）
