Editorial

European Gas Supply Crunch Highlights Need for New Investments in Fossil Fuels Says OPEC Chief

European Gas Supply Crunch Highlights Need for New Investments in Fossil Fuels Says OPEC Chief

Transition to Net-Zero carbon energy will require natural gas to play a key role according to Barkindo speaking at Gastech 2021

Ministers from world’s leading energy economies and industry leaders set out role of gas, LNG, and hydrogen in meeting future demand for energy at Dubai event

Gastech 2021 provides first opportunity for gas, LNG, hydrogen and energy leaders to meet face-to-face post pandemic and draw up agenda for low carbon economy

London – 23 September 2021– New investments in fossil fuels are needed if natural gas is to play a vital role in enabling the world’s economies to transition to net-Zero carbon energy by 2050, according to the Secretary-General of the Organisation of Petroleum Exporting Countries, Mohammad Barkindo.

Speaking at the recently concluded Gastech 2021 exhibition and conference, in Dubai, Barkindo said Europe’s gas crunch highlighted the need for more investment in fossil fuels. Governments, he said, need to pay more attention to industry facts and understand the switch to lower carbon energy will happen slowly. Investment, he said, is required to ensure global supply balances global demand.

His comments were echoed by Eng Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and Chief Executive Officer of Qatar Petroleum. “There is a euphoria around the energy transition that is forcing companies not to invest,” he said. “People should not forget that new investments are needed to just keep output sustained. People are now realising there’s a supply crunch and we haven’t even got into the winter season yet.”

The leading exhibition and conference supporting the gas, LNG, hydrogen and energy industry, Gastech 2021 was opened by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al; Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.

The first opportunity for the industry to meet face-to-face since the COVID pandemic began, Gastech 2021 was attended by 12 government ministers, and over 35,000 energy industry leaders, policymakers and key customers, from 80 countries, who engaged with the challenges of environmental agendas, leveraging technology, new ways of working to match changing market requirements and creating an inclusive and diverse workforce to counter an industry wide digital skills shortage.

Delivering the event’s welcome address, His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Chief Executive Officer of the Abu Dhabi National Oil Company (ADNOC) said although global gas markets are tight, with demand outstripping supply, the long-term future for natural gas remains robust.

“Today gas provides almost one-quarter of the world’s energy supply and will continue to play a critical role in the global energy system. No other fuel source can reliably supply the baseload power to heat and cool homes, drive heavy industry and expand economies, all while keeping emissions at a minimum,” he said.

For the first time Gastech 2021 included Gastech Hydrogen, a series of conference sessions exploring the potential for hydrogen to create a cleaner, more sustainable energy future and for GCC hydrocarbon producers to reduce methane emissions and drive the development of the global hydrogen economy. Speakers also discussed what needs to be done by policymakers to ensure the rapid expansion of the hydrogen supply chain and what impact regulations will have on facilitating the pivot towards green and blue hydrogen.

Christopher Hudson, President, dmg events, organisers of Gastech, said: “After the challenges of the pandemic, Gastech 2021 was instrumental in enabling the global gas, LNG, hydrogen and energy industry to engage with the complexities and hard facts around shifting supply and demand, decarbonisation and climate mitigation policies.

“By bringing together ministers, policy makers and industry leaders face-to-face, for the first time since the pandemic started, Gastech 2021 successfully facilitated the critical connections and conversations that will drive the energy industry forward for years to come, as it adapts to the winds of change reshaping energy markets.”

In addition to the role of hydrogen in meeting clean energy targets, Gastech 2021’s three-day Strategic Conference, provided insights from 350 speakers, including 70 industry CEOs, on key industry issues including decarbonisation and emissions management; financing and project investment; adapting business models in a post pandemic world; integrated energy suppliers; gas and LNG supply and demand dynamics; diversification of the future workforce; trading, contracting and pricing.

Simultaneously, the Gastech Technical Conference featured five learning streams – Hydrogen; Marine; EPC and Project; Processing and AI and Technology, providing multiple opportunities for working professionals to learn from the world's leading energy engineers as they presented the latest technological breakthroughs and market opportunities for the industry.

Meanwhile, Gastech 2021’s exhibition brought together over 250 companies showcasing a broad spectrum of digital technologies and services that are transforming the energy industry, including the industrial internet of things; artificial intelligence; big data and analytics; nanotechnology and robotics.

Gastech 2021, was held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and supported by the UAE’s Ministry of Energy and Infrastructure.  The exhibition and conference was co-hosted by ADNOC, Shell, and Venture Global LNG. The SPE Annual Technical Conference and Exhibition) took place alongside Gastech 2021.

The northern Italian city of Milan will host the 50^th anniversary edition of Gastech, from 05-08 September 2022, at the Fiera Milano Rho trade fair and convention centre.

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