COP26 a ‘wake-up call’; Oil and Gas still to be a vital part of Energy Systems, says Barkindo

COP26 a ‘wake-up call’; Oil and Gas still to be a vital part of Energy Systems, says Barkindo

Highlights:

  • The Oil Producer group OPEC’s secretary-general has said that the COP26 climate summit in Glasgow was a wake-up call for sure
  • Peeping into the future, Barkindo was firm to believe that fossil fuels would be essential in the coming years

COP26 Climate Summit proved to be an alert

The COP26 climate summit in Glasgow, according to the secretary-general of the oil producer group OPEC, was “certainly a wake-up call.”

Mohammad Barkindo was questioned by reporters at the ADIPEC energy sector meeting in Abu Dhabi if the accord agreed in Glasgow was finalized. It contained a successful late agreement on language about coal.

If you look at the fractures that emerged following the US withdrawal, he claims that rebuilding the Paris consensus in Glasgow is no small feat.

In comparison to pre-industrial levels, the Paris Agreement, signed in 2015, intends to keep global warming far below 2 degrees Celsius, preferably 1.5 degrees Celsius.

The goal of the COP26 agreement was to build on this and avoid the worst effects of climate change. Despite roadblocks like the phase-out of coal, fossil fuel subsidies, and financial aid to low-income nations, it was able to achieve this.

India and China, two of the world’s largest coal consumers, insisted on a last-minute tweak in the pact’s fossil fuel terminology from “phase out” to “phase down.” Opposing countries eventually succumbed after initial misgivings.

Barkindo, for one, was generally pleased with the outcome. He believes that John Kerry and his staff, along with [Alok] Sharma, the president of COP26, did an outstanding job in re-establishing the previously shattered consensus after Paris.

He also argued that the Glasgow climate deal would not have been achievable without unanimity. Looking ahead, Barkindo was adamant that fossil fuels would be crucial in the next years.

Its Effect on the Oil industry

When it comes to the oil business as a whole, Barkindo emphasized that it has been hurt by both low pricing and declining investment for several years.

 

“We haven’t yet recovered from decline from 2014 – 2016.” “We had around 25% yearly reduction in investment for two straight years, and then COVID-19 entered in and caused a 30% drop in the industry,” he said.

“With all of the obstacles to financial access, the industry needs to wake up… and confront reality.”

This appears to be a reality that is becoming increasingly unfriendly to fossil fuels. In an address at COP26, for example, United Nations Secretary-General Antonio Guterres made clear his position on the issue.

“Our reliance on fossil fuels is driving mankind to the edge of extinction,” he remarked. “Either we stop it or it stops us,” says the author.

Guterres went on to warn that “enough is enough.”

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