Global oil CEOs stress need for fossil fuels despite push for cleaner energy

Petro-Canada’s Edmonton Refinery and Distribution Centre glows at dusk in Edmonton, February 15, 2009 Reuters photo

A global energy conference devoted to future technologies and low-carbon strategies kicked off in Houston on Monday with top executives from energy companies affirming the need for more oil for decades to come.

The World Petroleum Conference’s four days of discussion started with chief executives from global giants Exxon Mobil Corp, Saudi Aramco and Halliburton Co all promoting the need to deliver oil and gas globally even as the world transitions to cleaner fuels.

World fossil fuel demand has rebounded sharply in 2021, with natural gas already at pre-pandemic levels and oil nearing levels reached in 2019. As demand has soared, economies in Europe and Asia have had to face power and heating supply shortages, forcing them to scramble for fuel or limit demand, and prices have surged. At the same time, numerous large oil-producing countries have not been able to keep up with output targets.

“The world is facing an even more chaotic energy transition,” said Saudi Aramco CEO Amin Nasser. “They assume that the right transition strategy is in place. It’s not. Energy security, economic development and affordability are clearly not receiving enough attention. Until they are, and we clear the gaps in the transition strategy, the chaos will only intensify.”

Large global majors, especially those based in Europe, are limiting exploration and production in an attempt to shift to renewable power development and as governments promote efforts to cut carbon emissions to deal with rising worldwide temperatures.

Anders Opedal, CEO of Norway’s Equinor, said energy companies have a responsibility to bring down emissions and provide energy. “We will need oil and gas for many years to come but with reduced emissions,” he said.

Exxon disclosed on Monday plans to achieve net zero greenhouse gas emissions from operated assets in the U.S. Permian basin by 2030, as part of a plan to reduce upstream greenhouse gas emissions intensity by 40 per cent to 50 per cent by 2030, compared with 2016 levels.

“The fact remains, under most credible scenarios, including net zero pathways, oil and natural gas will continue to play a significant role in meeting society’s need,” Exxon CEO Darren Woods said at the conference.