Home > Dynamic > OPEC: Oil and gas ar...

OPEC: Oil and gas are indispensable, the world cannot run on renewable energy and electric vehicles alone

2024-07-02

511

OPEC Secretary-General Haitham Al Ghais said that supporters of critical minerals believe that the world runs entirely on renewable energy and electric vehicles, but their assessment of the necessary investment and speed of energy transition sounds unrealistic and does not consider the full picture.

Policymakers and forecasters, as well as advocates of a rapid energy transition, need to carefully consider whether the required investment and supply of critical minerals are feasible under their net zero scenarios, Al Ghais wrote in an article published on OPEC's website on Monday.

Mining projects to extract critical minerals take a long time from discovery to first production.

In addition, critical mineral mining is also an energy-intensive activity that currently relies mainly on hydrocarbons. Otherwise it won’t work,” the senior OPEC official wrote.

Coal and natural gas are essential to the processing of key mineral feedstocks into battery-grade products that can be used in clean energy and electric vehicles.

“Petroleum-based products are also used in excavators, bulldozers, dump trucks on site, and in all forms of transportation to move minerals from supply centers to demand centers,” Al Ghais said.

Petroleum products and other fossil fuels are also used to produce solar panels, wind turbines and electric vehicles.

“The oil industry, renewable energy and electric vehicles are not separate from each other. They do not work in isolation.” OPEC reiterated its position that oil and gas cannot be removed from the global energy system and simply replaced with electric vehicles, solar and wind power plants.

“Is it realistic that renewable energy alone can meet the expected electricity expansion? Especially considering that the world has invested more than $9.5 trillion in ‘transition’ over the past 20 years, but wind and solar still account for less than 4% of global energy, while the total global penetration of electric vehicles is between 2% and 3%,” Al Ghais wrote. ”

Last month, Al Ghais said peak oil demand has not yet occurred, slamming the International Energy Agency's forecast that global oil demand will peak before 2030.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

CM Trade

As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.

[Products]

The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.

[System]

2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate

[Service]

Comprehensive market news, professional market analysis, 7*24 hours online customer service

[Advantage]

Low cost, high leverage, flexible one-stop all day two-way trading.

[Authority]

Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.

Free Access
Daily Trading Strategy Download Now

CM Trade Mobile Application

Economics Calendar

OPEC: Oil and gas are indispensable, the world cannot run on renewable energy and electric vehicles alone

Access to global trading markets anytime and anywhere