New Delhi, Nov 16 (Representative) India will see fossil fuels continuing to play an important role in its energy transition towards low carbon sources and in strengthening economy, even as international opinion grows for phasing out fossil fuels to reverse the adverse impact of climate change. “Energy transition towards low carbon sources shall not be a single process, but a series of transitions over a couple of decades during which fossil fuels shall continue to play their important roles of building and growing economies,” said Subhash Kumar, Chairman and Managing Director of ONGC as he joined business leaders of oil and gas industry from around the world in calling for ‘responsible investing with the objective to hold back the emission, not progress’.
The CEO’s roundtable was held as part of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), organised by the Abu Dhabi National Oil Company (ADNOC) in Abu Dhabi. According to Kumar, the issue of GHG emission has to be seen through the prism of energy poverty and hence, the energy transition has to concurrently address the issues concerning energy security and energy affordability,” the CMD said at the roundtable attended by global heads of energy firms. The deliberation assumes significance, coming close on the heels of the COP 26 in Glasgow. India got almost 200 nations to accept its demand for “phase down” coal power in the text of the Climate Pact deal. While a North-South divide is visible as far as the emission reduction vis-à-vis the demand for investment support is concerned, according to Daniel Yergin, vice chairman of IHS Markit, there was comfort in the fact that North is listening to the South. With the industry assuming more importance than ever before in context of energy transition, oil and gas would be central to the conversation of low emission. Sultan Ahmad Al Jaber, Minister of Industry, Advanced Technology and Managing Director and Group CEO of ADNOC.
There was intense deliberation on the future course of action and direction of the global oil and gas industry as it faces challenges of climate change, environment and sustainability challenges. The industry also faces issues around the speed and dimensions of energy transition, new energy like hydrogen as well as the importance of addressing the energy poverty, energy security and equitable economic growth. The other takeaway of the deliberations was the need for rapid innovation and technological development to augment capital efficiency, reduce carbon emission and decarbonize the entire hydrocarbon value chain by collaboration of activists, scientists and business community.