In a notable address delivered today, Sultan al-Jaber, the Emirati president-designate of the forthcoming United Nations COP28 climate talks, issued a compelling plea to oil and gas companies, urging them to play a pivotal role in combatting the ever-pressing issue of climate change.
This call comes at a time when the industry is actively ramping up its production to take advantage of the surging global energy prices.
Al-Jaber’s appeal serves to underscore the glaring disparity between climate activists, who harbor a degree of skepticism towards his industry affiliations, and his resolute insistence on drastically reducing global emissions by nearly half within a mere seven years, in a bid to curtail global warming to a maximum of 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels. “
This represents our guiding light; it is, in essence, our sole destination,” stated al-Jaber with utmost conviction. “It is merely an acknowledgment and reverence for scientific fact.”
In light of the pressing global challenges posed by climate change and the increasing demand for energy, it is crucial to strike a delicate balance between environmental sustainability and human prosperity.
As the world’s population continues to grow, so does the need for energy to power our economies, industries, and daily lives.
However, it is imperative that we approach this task with a sense of responsibility and foresight, ensuring that our actions do not come at the expense of the planet’s well-being.
While we strive to meet the energy needs of the growing population, it is essential to prioritize the development and implementation of sustainable and renewable energy sources.
By embracing innovative technologies and investing in clean energy solutions, we can mitigate the adverse effects of climate change and safeguard the future of our planet.
Moreover, we must also foster international cooperation and collaboration, as addressing these challenges requires a collective effort on a global scale.
Only by working together can we achieve a harmonious coexistence between human prosperity and environmental preservation, ensuring a sustainable and prosperous future for generations to come.
Mr. Al-Jaber assumes the crucial role of CEO at Abu Dhabi Oil Co., a government-controlled entity that boasts an impressive daily crude oil pumping capacity of 4 million barrels, with aspirations to reach a staggering 5 million barrels.
It is under his leadership that the annual Abu Dhabi International Petroleum Exhibition and Conference, a gathering of industry giants in the oil and gas sector, takes place.
Although this year’s conference is said to have a primary focus on “decarbonizing faster together,” it predominantly centers around the exploration, processing, and sale of the very fossil fuels that contribute to climate change, resulting in increasingly severe and frequent extreme weather events such as storms, droughts, floods, and wildfires.
Al-Jaber himself has repeatedly emphasized the necessity of relying on oil and gas in the short term to bridge the energy gap, while acknowledging the inevitability of a gradual reduction in fossil fuel consumption.
He stresses the importance of incorporating such a transition into a comprehensive energy plan that is fair, swift, just, well-organized, equitable, and responsible.
On the business front, the oil industry is experiencing a resurgence. Following a brief period of negative prices during the lockdowns imposed in response to the coronavirus pandemic, the benchmark Brent crude is now trading at approximately $92 per barrel.
The recent decision by Russia to halt its exports of diesel fuel is expected to have a significant impact on global inflation, particularly through the subsequent increase in transportation prices that will ultimately be passed on to consumers.
This development is further compounded by the fact that Gazprom, the state-owned natural gas company that plays a crucial role in Russia’s economy, was prominently featured at a recent conference in Abu Dhabi, despite being subject to U.S. sanctions due to Moscow’s involvement in the conflict with Ukraine.
This event underscores the deepening financial ties between the United Arab Emirates and Russia, despite the UAE’s longstanding military alliance with the United States and its hosting of numerous U.S. troops.
The conference itself served as an opportunity for the UAE to address the skepticism of climate scientists, activists, and others who question its suitability as a host for the U.N. Conference of the Parties (COP).
While there were outward displays of unity and cooperation at the conference, Saad al-Jaber, the UAE’s representative and leader of the talks, acknowledged the criticism he has faced.
In response, al-Jaber passionately defended his country’s hosting of the conference, urging critics to refrain from making baseless attacks and emphasizing the industry’s potential to be a central part of the solution to global challenges.
In the wake of al-Jaber’s speech, OPEC Secretary-General Haitham al-Ghais took the opportunity to commend his remarks and offer a staunch defense of the oil industry.
With a tone of admiration, al-Ghais highlighted the significance of al-Jaber’s words, recognizing the importance of a unified voice within the organization.
He acknowledged the challenges faced by the oil industry, emphasizing its critical role in driving global economic growth and meeting the energy demands of nations worldwide.
Al-Ghais underscored the ongoing efforts of OPEC to maintain stability in the oil market, ensuring fair and reasonable prices for both producers and consumers.
He emphasized the industry’s commitment to sustainable practices, acknowledging the need for continuous innovation and technological advancements to mitigate environmental impacts.
Al-Ghais concluded his remarks by reiterating OPEC’s dedication to collaboration and cooperation, as they strive to navigate the ever-evolving energy landscape and address the challenges that lie ahead.
“We see calls to stop investing in oil. We believe this is counterproductive,” stated al-Ghais, emphasizing the importance of energy security for global economic prosperity.
In line with this, al-Jaber highlighted that 20 oil and gas companies had committed to becoming “net zero” by or before 2050 and eliminating routine gas flaring by 2030.
However, it is acknowledged that the industry will continue to produce oil and gas, which release carbon dioxide and contribute to the trapping of heat in the atmosphere.
Al-Jaber, a seasoned climate envoy, has played a pivotal role in the federation of seven sheikhdoms on the Arabian Peninsula, directing significant financial resources towards renewable energy initiatives.
His efforts have garnered support from influential figures such as U.S. climate envoy and former Secretary of State John Kerry, who is currently visiting the UAE.
This backing is seen as a testament to al-Jaber’s capability to lead the upcoming COP28 talks. In a related development, Turkish Energy Minister Alparslan Bayraktar announced at the Abu Dhabi conference that the flow of an Iraqi-Turkish oil pipeline, which had been suspended for several months, would resume this week.
The announcement made by the spokesperson regarding the operational readiness of the pipeline marks a significant milestone in the ongoing efforts to enhance oil transportation infrastructure.
With the resumption of oil operations, the imminent commencement of operations for the Iraqi-Turkey pipeline is indeed a promising development.
This pipeline, once fully operational, is expected to play a pivotal role in meeting the ever-growing demands of the oil market.
The projected supply of half a million barrels is a testament to the potential capacity of this pipeline to contribute substantially to the global oil supply.
The successful implementation of this project will not only bolster the economic prospects of both Iraq and Turkey but also strengthen their bilateral relations.
As we eagerly await the commencement of operations, it is evident that this pipeline holds immense promise and will undoubtedly have a significant impact on the global oil market.
The lack of elaboration on the terms for the 970-kilometer (600-mile) pipeline, which happens to be Iraq’s largest, raises concerns and leaves room for speculation.
Without clear and defined terms, it becomes difficult to assess the potential benefits and drawbacks of such a significant project.
Furthermore, the mention of an international arbitration case in March, where Iraqi officials successfully halted oil exports from the semiautonomous Kurdish region to Ceyhan, Turkey, adds another layer of complexity to the situation.
The decision to halt these exports implies underlying tensions and disputes between different regions and stakeholders within Iraq. It is crucial to consider the implications and consequences of such decisions, not only on a national level but also in terms of international relations and the energy market.
As Iraq seeks to navigate these challenges and ensure the stability and success of its oil exports, transparency and open communication regarding the terms of the pipeline project are essential.
The reopening of the pipeline in Iraq has not yet been acknowledged by Iraqi and regional Kurdish government officials, although Iraq’s oil minister has made a statement suggesting that it was expected. However, no further details were provided regarding this anticipation.
The news of the pipeline restarting has had a significant impact on Gulf Keystone Petroleum Ltd., the company responsible for operating the Shaikan oil field in the Kurdish region of Iraq.
As a result of this development, the company’s stock experienced a substantial increase of over 20% in trading on the London Stock Exchange on Monday.
Furthermore, it is worth noting that the pipeline had also suffered damage during the recent earthquake and subsequent flooding in Turkey. Nonetheless, these damages have been successfully repaired, allowing for the pipeline’s reopening.