Igor Sechin, Chief Executive Officer of Rosneft, Russia’s major oil producer, has said that contrary to popular predictions, demand peaking for fossil fuels remains distant.
Raising living standards in developing nations to even half the level of developed nations would require nearly doubling global oil production, he said at the XVII Verona Eurasian Economic Forum in Ras Al Khaimah.
Investment bank JPMorgan estimates global oil demand will increase by six million barrels per day by 2035, driven by emerging economies such as India.
Superiority of fossil fuels
He emphasised the superiority of fossil fuels -- diesel is nearly 30 times more efficient than hydrogen, while natural gas surpasses wind and solar by 270 times.
The event brought together representatives of governments, businesses, and civil society organisations from Europe and Asia, focusing on strengthening Eurasian cooperation.
Sechin said that the modern energy system is wholly based on fossil fuels, which currently accounts for more than 80% of all primary energy consumed worldwide. Oil, gas and coal are indispensable in the life of modern man and society: fossil fuels are easily transportable.
For example, the amount of energy that can be moved 1,000 miles for just under one dollar-for pipeline oil it’s up to 4.4 megawatt-hours, for pipeline gas it’s up to 1.2 megawatt-hours, while for hydrogen this figure will be only a fraction of 0.2 megawatt-hours.
Global demand for fossil fuels expected to rise
“Oil accounts for more than 30% of global energy consumption, coal 25%, and gas 22%,” Sechin remarked, adding that fossil fuels remain the backbone of the global energy system.
Challenges to the energy transition
Sechin criticised the rapid push to abandon fossil fuels, citing historical climatic cycles and the immense financial and structural hurdles to transitioning to low-carbon energy sources. Achieving the Paris Agreement goals by 2050 would require $70 trillion in investments and a tenfold increase in low-carbon electricity generation capacity—a feat Sechin described as “unrealistic.
He further noted the challenges faced by green economy companies, with many failing to meet their goals on time, causing investor hesitancy.
Quoting the ancient Greek historian Thucydides, Sechin drew parallels to today’s geopolitical landscape, cautioning against the consequences of hegemonic competition.
The head of the corporation also said that green economy companies are objectively not able to achieve their goals on time, so many investors simply do not want to work with them.
Oil giants such as Chevron, BP and Shell are halting projects to produce alternative fuels, Denmark's largest energy company Orsted even cancelled the construction of a methanol plant due to low demand.
Sechin called for a pragmatic approach to the energy transition, acknowledging the continued role of fossil fuels while addressing global energy demands responsibly.
Huge potential for Eurasian cooperation
“I am convinced that the potential of our cooperation is enormous, and we are only at the beginning of the road to its implementation,” Sechin said and quoted the first president of the UAE, “Unity is the path to strength, honour, invulnerability, and common good.”--TradeArabia News Service
