Some of the main points covered during the discussion:
- In the last decade, there has been a push by western economies to achieve aggressive climate targets, overlooking the need for energy security. The current crisis has just proved that their approach was unsustainable.
- OPEC producers in contrast have been calling for continued investment in oil and gas as the demand for these fuels will still be present for many years to come – even under the most aggressive climate policies.
- There is a divergence between international oil companies (IOCs) and NOCs when it comes to production. BP for instance wants to reduce its oil production by 2030. Aramco, on the contrary, is going in the opposite direction as it plans to increase its production and spare capacity.
- Oil exporting countries, led by Saudi Arabia, are the main winners from this energy crisis. Their NOCs record profits are creating significant windfalls for the government with positive spillover on the economy.
- In the International Monetary Fund’s latest economic outlook, Saudi Arabia received an upgrade to its GDP growth unlike most of the other G20 economies.
- The US Inflation Reduction Bill, while provides significant support for green energy and EVs, also supports the oil and gas industry. That balance played an important role in passing the bill.
“Russia’s oil is in long-term decline – and the war has only added to the problem“, Dr Carole Nakhle, Jul 2022
“Record profits for oil-producers“, Dr Carole Nakhle, Aug 2022
“Egypt’s LNG exports to Europe receive boost amid gas crisis“, Dr Carole Nakhle, Jul 2022
“Russia’s war help Qatar reassert its importance“, Dr Carole Nakhle, Jul 2022