Energy 'transition' the buzzword, but a fossil future for the Gulf

In the vast air-conditioned halls of an Abu Dhabi conference centre, the world's much-vaunted transition to clean energy is the buzzword in sessions of a top industry gathering.

But many executives and officials from oil-dependent Gulf states insist that while the change to renewables is essential, fossil fuels remain the future at least for the next few decades, despite the urgent need to fight climate change.

The debate has taken centre stage at this week's World Energy Congress, with many officials calling for accelerating the process of moving to clean power sources and minimising carbon emissions.

Speakers addressed issues like the role of nuclear, hydrogen gas and other non-conventional sources of energy as a replacement for fossil fuels which currently account for over three quarters of the world's energy consumption.

However, delegates from oil-producing countries and particularly those in the Gulf argued that although the transition to clean energy sources must be supported, they will not be able to meet rising demand any time soon.

"For decades to come the world will still rely on oil and gas as the majority source of energy," said the head of Abu Dhabi Oil Company Jaber Sultan.

"About USD 11 trillion of investment in oil and gas is needed to keep up with current projected demand," over the next two decades, he told the congress which was attended by representatives of 150 nations and over 400 CEOs.

Energy from increasingly competitive renewable sources has quadrupled globally in just a decade, but insatiable demand for energy particularly from developing economies saw power sector emissions rise 10 percent, a UN report said last week.

"All energy transitions -- including this one -- take decades, with many challenges along the road," the CEO of Saudi energy giant Aramco, Amin Nasser, said at the conference.

Nasser said his country supports the growing contribution of alternatives, but criticised policies adopted by many governments that do not consider "the long-term nature of our business and the need for orderly transition."
He said while the United Arab Emirates has put plans into action, "Saudi Arabia which has always made big announcements regarding their renewable energy ambitions is lagging behind as their projects and targets remain ink on paper. There is no doubt that the world will leave oil behind. The only question remaining is when will this happen?"