Rise In Oil Prices Underscores The Need For Net-Zero Investments In Global Energy Security

The world has the resources and the technology and must move forward with the right ideas of improving capital investment and hit the ground running.

“The $100 [per barrel] oil and $130 gas is really putting the foot flat down on the accelerator to get to net-zero faster.”

There are however obstacles to achieving carbon neutrality which essentially stems from the evolution of technology, and the people’s awareness and willingness to pursue it.

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The private sector needs to boost financing efforts to speed up the transition to net-zero.

Increasing demand for crude last year meant that the oil prices were 67 percent higher. The geopolitical tension in the background has not helped the situation.

Brent, the global benchmark for two thirds of the world's oil, which soared to a notch under $140 per barrel this month, has since given up gains thanks to the war and the pandemic.

The move to green hydrogen from Africa into Europe means that a lot of existing infrastructure, including natural gas pipelines and storage, can be used for cleaner fuel.

“We will continue to need a lot of oil in the market [in the meantime] as it is clearly tight from a supply point of view and places like the Middle East with the cheapest source of oil will continue to gain market share even past a peak oil [demand point],”  says Marco Alvera, chief executive of Italian energy infrastructure company Snam.

Mr. Froehlich, CEO at Adnoc says, “ both green and blue hydrogen are big on Adnoc's agenda as it continues to invest in its oil and gas output capacity to remain a reliable energy provider to global markets.”

Sources say that about $50 trillion in incremental investments is required by 2050 to achieve net-zero goals and cut greenhouse emissions by about 51 billion tonnes per year.

This means that irrespective of geopolitics and pandemics one has to carve a clear road for sustainable development.