OPEC calls on IEA to prioritize energy security over net zero ideology

OPEC Secretary General Haitham Al Ghais emphasizes the need to reconcile energy security with emission reduction goals, in light of the International Energy Agency's (IEA) approach.

Partagez:

Haitham Al Ghais, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), recently stressed the critical importance of energy security for the proper functioning of modern society. According to him, a disruption in energy supply could lead to dramatic consequences, such as job losses and economic decline. “Without energy, many things we take for granted would come to a standstill,” he stated.

Al Ghais expressed support for the “International Summit on the Future of Energy Security,” organized by the UK government and the International Energy Agency (IEA) in London. He praised the IEA’s renewed focus on energy security, a principle that OPEC fully supports. However, he criticized the IEA’s previous policies, which he views as too focused on ideological net zero goals with unrealistic targets that did not take into account the real challenges.

In an analysis of the situation, Al Ghais highlighted contradictions in the IEA’s recommendations. He argued that despite a policy advocating for the cessation of investments in new fossil fuel resources, fossil fuels remain essential, representing over 80% of global energy consumption. The IEA, while reducing the share of fossil fuels in its goals, forecasts record demand for oil and gas in 2025, as well as a rise in coal consumption.

Al Ghais also emphasized that OPEC views emission reductions and energy security as inseparable goals. He reaffirmed that investments in all energy sources are necessary to ensure sustainable development, stressing the need for policies based on real data and trends, rather than ideological beliefs.

OPEC, in collaboration with the IEA, is also hosting the IEA-IEF-OPEC workshop in Vienna, aimed at discussing the dynamics between physical and financial energy markets. Al Ghais views this as crucial for the stability of energy markets and global energy security.

Reactions to IEA Policies

Al Ghais expressed hope that at the London conference, the IEA would reaffirm its commitment to energy security. He acknowledged the importance of future collaboration between the IEA and OPEC to develop global energy strategies. “We look forward to working with the IEA after years of its policy prescriptions impacting energy security,” he concluded.

Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.
Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.