The crucial highlights and meaningful contributions of the global energy stakeholders at the just concluded NOG Energy Week 2023 recently held in Abuja, Nigeria should not be deliberated without placing special emphasis on the seasoned and all encompassing address made by the Organization Petroleum Exporting Countries (OPEC) Secretary General H.E Haitham Al Ghais.

Highlighting his speech based on the event’s Theme: POWERING NIGERIA SUSTAINABLE ENERGY FUTURE, The OPEC boss expatiated on how crucial the theme of the event is to Africa especially as the industry continues to seek the right path to the future and sustainable energy transition which is now a global top priority.

According to OPEC Secretary General, H.E Haitham Al Ghais, one thing is certain especially when it comes to meeting the World rising energy demand and at the same time addressing the climate change. He stated that to overcome this challenge there must be need to assert a fair, inclusive and equitable approach in seeing that no stakeholder is left behind in the course of navigating energy transition to power and this is very important especially to Nigeria as well to Africa.  

However he further emphasized the need for all OPEC members’ inclusiveness when it comes to resolve of crucial matters, stressing that Africa Continent having seven OPEC country members has prominent roles to play. Notwithstanding the above fact, it is an utmost duty of the Organization to display a level playing field in ensuring that all OPEC Countries voices are heard in all circumstances and must be considered in any negotiations or discussions particularly as concerns climate change. Noting that OPEC unalloyed aspiration is geared towards the advancement of the citizenry irrespective their nationality and geographical location.

“Dealing with this issue is not only for OPEC in fact there is an organization we have long standing dispute of supporting environment issue and sustainable development. We have been directly involved in discussions that led to United Nation frameworks convention on climate change.

“OPEC is aware that the COP 28 will be hold in later this year by our member country the United Arab Emirates. This COP will provide the unique opportunities for equitable outcomes, while also highlighting to help address climate change including the ongoing activities to lead in diversification of energy resources,”  H.E Haitham Al Ghais stated. 

“According to our world oil outlook, the global primary energy demand forecast is to increase by significant 23% to the period of 2045. This means we will have new other forms of energy; these include solar, nuclear, wind and waste to energy power and we will require innovative solutions such as CCUS, hydrogen project to offset carbon economy outcome growth,” Al Ghais added. 

On the organizations’ pursuits in entrenching an enduring access to energy to teeming population of member countries, the OPEC Secretary General posited that significant global population do not have access to electricity and other forms of cleaner energy. But inasmuch as equitable distribution of energy is concerned there is need to approach these shortfalls pragmatically with sustainable policies to avoid unforeseen circumstances.

“According to United Nations 723 million people do not have access to electricity, furthermore one third of World population use dangerous or inefficient cooking systems which cause a host of health related problems. This uneven world of energy have and have not will require a capacity and natural circumstance of developing countries be taken into account by considering action relating to climate change. 

“Policy makers must be aware that even best intention can result to unintended consequences and a policy not well thought out, we could end up making things worst with a potential of high volatility energy shortfalls and unwanted outcomes, ’’OPEC Boss Emphasized.

The prevailing shortfalls on global oil and gas project funding have been a great source of concern to most OPEC members. Major world energy investors are rechanneling their investment portfolios to energy transition projects citing global climate warming as a yard stick. But still on his virtual address at NOG Energy Week, H.E Haitham Al Ghais discredited this move on basis that major carbon emissions are being generated by major developed industrial countries and Africa should be exempted from cancellations and delays of oil and gas projects since it contributes little to the current global emissions.

“One area of great concern I will like to highlight is related to industry investments, the global oil sector alone will need a massive human investment of 12.1 trillion dollars throughout the year 2045. We are currently not on track in reaching that level. And to make things worst we getting calls to limit or stop funding new oil and gas projects all together.

“This is of course unwise and unrealistic scenario that could be particularly devastating to developing countries that rely on revenue from their precious Oil and Gas resources to develop their economics,” H.E Haitham Al Ghais stated. 

According OPEC Chair, Africa for example is placed within an estimated 120 billion barrels of proven oil reserves and 18 trillion scf of natural gas. However, significant investment will be required to fully realize these potential resources to benefit African citizens while also enabling necessary litigation attributed to reduce the carbon front-prints of the oil industry.

In conclusion to his key note address, he further stress that in some cases financial institutions are limiting and tightening how money is invested into fossil fuel under Environment Social Governance. ESG guidelines are situations hindering Africa project despite the fact that Africa countries for only few percent of global greenhouse gas emission.