OPEC Chief says time to rethink 'energy transition'

Haitham Al Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC)

Haitham Al Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), called for a reevaluation of the concept of energy transition, warning that the journey toward transformation in the energy sector could pose “major challenges” to energy security, availability, and emissions reduction efforts.

In an article published by OPEC on Jan. 13, Al Ghais argued that recent years have highlighted the risks of “ambitious and unrealistic” net-zero agendas. "It has led to populations pushing back on these proposals, as they comprehend the implications of them on their energy supply and in their pockets," he noted.

“Energy sources are locked in a never-ending competition and have constantly replaced each other: coal replaced wood, which was replaced by oil, which apparently will be replaced by renewables,” Al Ghais added.

“This is also wrong,” he added. “Energy sources have not disappeared; in fact, they continue to complement and even depend on each other. Our energy past has not been a series of replacement events, and nor will our energy future.”

Al Ghais underscored OPEC’s view of renewable energy as a cornerstone of the future energy mix, highlighting significant investments by member countries to enhance their renewable energy capacities.

He also highlighted the need to recognize that developing renewable energy sources relies on other energy inputs. For instance, petroleum-based products like fiberglass are used in wind turbines, while ethylene plays a key role in the production of solar panels.

“Today, global oil consumption is rising year-on-year, and the petroleum products derived from it continue to provide immense benefits to billions,” Al Ghais said, warning that “without them, cars, buses, trucks, and lorries would be stranded, airplanes would be grounded, the construction sector would all but grind to a halt, food production would be devastated, and health products such as medical syringes, hand sanitizers, artificial heart valves, resuscitation masks, and stethoscopes would be difficult to produce.”

Given these realities, Al Ghais argued that it is time to rethink how energy transition is viewed. “The past has shown us that our future has never been about replacing sources of energy; it has been about embracing new ones and continually finding new uses for energy,” he said.