Vesna Marinkovic U.
We must be realistic and understand that we have a responsibility to provide energy to any individual who demands it, and undoubtedly, the role of hydrocarbons, and specifically oil, will continue to be very relevant for many years to come. The future of the energy sector will not be conditioned by the lack of oil but by the technological developments that are yet to come, says the President of the World Petroleum Council (WPC).
1The oil and gas industry makes a significant contribution to the global economy and its growth and development. How is the sector being perceived by the World Petroleum Council amidst global scrutiny due to climate change?
Our industry has always risen to meet all the challenges it has faced. At present, the demand is to provide energy through a more sustainable model, and in that aspect, we will also rise to the occasion. Specifically, the commitment to achieve net zero emissions is already part of the majority of our companies, and we will achieve it based on what has always distinguished us: innovation and technology. But we must not forget that we have the responsibility to deliver energy to any point on the planet that needs it.
“The proven oil reserves are estimated at 1.564 trillion barrels. At the current consumption rate, they represent approximately 43 years of global consumption.”
2The oil industry alone accounts for nearly 3 percent of global GDP. According to data from the International Energy Agency in 2020, crude oil trading reached $640 billion US dollars, making it one of the most traded commodities in the world. How is the situation at the end of 2023?
The world consumes more energy than ever before. Specifically, close to 600 exajoules in total. Of this amount, around 54% comes from hydrocarbons (30% oil and 24% gas), and if we include coal, 80% of the world’s energy consumption is carbon-derived. We must be realistic and understand that we have a responsibility to provide energy to any individual who demands it, and undoubtedly, the role of hydrocarbons, and specifically oil, will continue to be very relevant for many years to come.
3Can we say that it is a capital-intensive sector?
Without a doubt, it is a highly technified industry based on innovation. This requires a high capital intensity.
4At the end of 2023, how much were the investments in oil and gas supply globally?
We can discuss the closing data for 2022. According to the International Energy Agency, by the end of this year, investments in the oil sector were close to $500 billion US dollars, with those in the gas sector close to $250 billion US dollars. These are very significant figures, amounting to approximately 31% of the total investments in the energy sector as a whole.
In any case, it is very relevant to see the trend. In 2014, the combined figure for both sectors was close to $1.2 trillion US dollars, making the current figure approximately 63% of that in 2014. This poses a clear challenge for the future. Undoubtedly, here, the restrictive regulatory policies of many countries have their impact.
5How many people are still employed by the oil industry at the end of 2023?
According to the International Energy Agency, the oil industry employs 10.8 million workers, approximately one-third of the total workforce in the energy sector.
6Do you believe that controlling the production of oil and gas worldwide still plays an important geopolitical role today and affects global conflicts?
Undoubtedly, energy and geopolitics remain intimately linked. As long as the oil and gas sector accounts for more than 50% of the energy consumed globally, controlling production is relevant in this sense. But it is not only an aspect linked to production itself; control of distribution, including transportation routes, is also very relevant. In 2021, according to the BP Statistical Review, 70 million barrels per day were transported via various routes. This means that almost 70% of oil consumption must transit from the place of production to consumption. It is therefore a critical aspect to ensure supply security.
7Is there oil for the foreseeable future?
Proven oil reserves are estimated at 1.564 trillion barrels. At the current consumption rate, they represent approximately 43 years of global consumption. This figure has remained more or less stable for many years. How is this possible? The answer lies in the technological capacity of companies.
It is technology that allows for the discovery and extraction of new reserves for consumption. This requires investments, as we mentioned earlier, and for that, a stable regulatory framework. Undoubtedly, the future of the energy sector will not be conditioned by the lack of oil but by the technological developments that are yet to come.
According to the International Energy Agency, the oil industry employs 10.8 million workers…”
