Reuters
Published Dec 07, 2021 17:10
By Marianna Parraga and Erwin Seba
HOUSTON (Reuters) - Top energy executives this week urged a more cautious transition of energy policy away from oil and gas, but a U.S. Energy Department official said the industry has a moral obligation to address climate change and the economic opportunity it represents.
Executives from Saudi Aramco (SE:2222), Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), speaking at the World Petroleum Congress in Houston on Monday, blamed demand for renewables and lack of investment in fossil fuels for recent fuel shortages and price volatility.
The conference was marked by withdrawals of top energy ministers over travel restrictions and concerns over the Coronavirus. The verbal skirmish occurred at a time when oil demand has recovered sharply from a collapse during the coronavirus pandemic even as world governments have stressed the urgency of addressing climate change.
"The volatility in commodity prices and the impact on business and people," said Equinor ASA Chief Executive Anders Opedal, "illustrates the risks we face in an imbalanced transition."
U.S. deputy Energy secretary David Turk pushed back against the industry position, saying addressing climate cannot be put on the back burner.
"There is not an alternative to stepping up and fixing the threat to climate change," he said to an audience in a largely empty hall.
Consumers in Asia and Europe have been dealing with shortages of natural gas, coal and power due to production declines that pushed prices to multi-year highs. In the United States, the Biden administration has criticized oil and gas companies, saying they put profits over consumers.
The tension between investing in oil and gas, carbon reduction technologies and responding to investors demanding higher returns will be a continuing issue for major oil firms, executives said.
"The future of energy is lower carbon from exploration discoveries and production," said Liz Schwarze, vice president of global exploration at Chevron.
Amin Nasser, CEO of Saudi Aramco, the world's largest oil producer, said there are too many incorrect assumptions made about the pace at which consumers will shift to renewables from oil and gas.
People "assume that the right transition strategy is in place. It’s not," said Nasser. "Energy security, economic development and affordability are clearly not receiving enough attention."
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.