Fossil fuels to play vital function in international power safety, says Rosneft CEO

Fossil fuels will proceed to play an vital function in international power safety regardless of the sharp development in renewable power basket to de-carbonise the globe, mentioned Igor Sechin, Chief Govt Officer of Rosneft, the Russian oil main. 

Whereas talking on the lately held XVII Verona Eurasian Financial Discussion board, he highlighted projections from Financial institution of America, which estimate that financial development in growing international locations and the growth of knowledge centres will drive an annual improve of as much as 9 million barrels of oil equal per day (boepd) in international power consumption. 

In the meantime, renewable power manufacturing is anticipated to develop by solely 2 million boepd, underscoring the continuing reliance on oil and fuel, he emphasised accounting to a press release.

By 2050, international oil demand is forecasted to rise to twenty million barrels per day (bpd), supported by rising consumption in India and different growing nations, he mentioned.

He additional emphasised the necessity for vital funding within the power sector. 

In line with OPEC, annual investments in oil manufacturing should improve by 50%, reaching $550 billion by 2050, to satisfy market calls for and compensate for the depletion of standard reserves. 

He famous that sustaining present oil manufacturing ranges requires changing 11% of world manufacturing yearly, highlighting the rising significance of hard-to-recover reserves.

He additionally questioned the feasibility of attaining net-zero targets, noting that renewable power capability would wish to extend tenfold by 2050 to 35 terawatts—a determine over 4 instances the world’s present put in power capability.

He additionally identified that manufacturing electrical autos produces 35–50% extra emissions than conventional autos, primarily because of battery manufacturing, elevating doubts in regards to the effectivity of present applied sciences that are known as inexperienced. 

On a geopolitical stage, Mr Sechin highlighted Russia’s contributions to stabilizing international power markets by means of initiatives like OPEC+, which helped improve market stability and defend producers’ pursuits, in accordance with the assertion.

He additionally reaffirmed the strategic significance of Eurasian cooperation, noting that Russia’s useful resource base, valued at $100 trillion, performs a vital function in guaranteeing long-term power safety for the area and past.