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The International Energy Conference is about to be held, and whether OPEC can reach an agreement to freeze production seems to no longer matter, because freezing high-level production will not have much effect, and production reduction measures can truly provide broad room for oil prices to rise.
Iranian energy expert Doukar (<>r) warned that the policies pursued by the Saudi-led OPEC could end up causing environmental disaster.
If Saudi Arabia freezes current production levels, it will not help raise oil prices. If oil prices remain low, reducing CO2 emissions will also become a huge challenge for some countries.
Most energy industry experts say it makes no sense for Saudi Arabia and other Gulf countries to freeze current production levels if Russia is not taken into account, and that does not take into account the impact of climate change.
People have always regarded renewable energy as the only choice to replace fossil fuels. Many environmental groups and energy industry experts have previously warned that low oil prices will hinder the development of renewable energy. But the energy industry and the environment seem to be stuck in a vicious cycle. If oil and gas are cheaper, renewable energy becomes less attractive because it costs more. However, even if oil prices rise, not much will change.
This is because, although <> countries signed a climate agreement at the Paris Climate Summit last year, most of these countries are developing countries. It will be difficult for developing countries to meet their obligations under the climate deal because renewable energy remains more expensive than most fossil fuels.
What’s more, renewable energy is still not as reliable as oil and gas in terms of continued supply. There have been many recent developments in renewable energy, including new types of batteries and the use of bacteria to produce energy. However, these new developments face a thorny issue - economic feasibility.
Of course, oil and gas companies are not going to sit back and let renewable energy replace fossil fuels. In fact, the renewable energy revolution is hardly a revolution, it is more of an evolution, and therefore will take longer.
Oil and gas are still more economical fuels. Even with prices at <>$/barrel, demand for crude oil remains strong, especially for economies like China and India, not to mention other smaller developing countries.
Therefore, as Doucal warned, "The view that solving the problem of global warming requires keeping oil prices rising is untenable. Keeping oil prices rising will not solve the problem of global climate change. Instead, developing countries will only consume more oil and natural gas.
There is no doubt that when oil prices rise rapidly, it will help Iran return to pre-sanctions and gain a foothold in the oil market, but it will also help Saudi Arabia implement its vision<>, because it includes plans for renewable energy. In other words, whether oil prices are high or low, oil and gas will continue to weaken the impact of policies to curb climate change until its seriousness is recognized.
The International Energy Conference is about to be held. Whether OPEC can reach an agreement to freeze production seems to be no longer important. What is important is that production reduction measures truly provide broad room for oil prices to rise, and provide opportunities for the development of renewable energy and the improvement of climate change. Make substantial changes.
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