OPEC leaders demand more oil to ensure energy security

In Vienna, Austria, during the biennial OPEC International Seminar, leading oil ministers reinforced the need for increased oil production to cater to the world's rising energy demands. The Saudi Energy Minister, Prince Abdulaziz bin Salman, articulated concerns regarding the impact of the energy transition on the global economy, emphasizing that the world is moving towards a scenario where oil and gas will remain essential in supporting economic growth, particularly in developing countries. The prince highlighted that as countries around the globe face challenges in maintaining energy security, reliance on hydrocarbons is becoming more pronounced. Notably, he pointed out that renewable energy sources, while expanding, cannot yet fulfill the energy needs of many nations, especially in crucial sectors like heavy industry, aviation, and haulage. He stressed the necessity of understanding sustainability in a broader context that includes economic dimensions alongside environmental ones, advocating for a balanced approach in energy policies. During this seminar, the UAE’s energy minister Suhail Al Mazrouei stated that the oil market is currently absorbing production increases well and emphasized the importance of maintaining stability in oil prices for investment purposes. Al Mazrouei also noted that despite rising production levels, inventories have not significantly increased, indicating a persistent global demand for oil. In recent meetings, OPEC+ decided to augment their collective production rates, with a notable increase of 548,000 barrels per day for August, following earlier hikes. This decision reflects an effort to mitigate the impact of prior production cuts and respond to market needs. The seminar aspects were marred by media access restrictions, with many major news organizations unable to report directly from the event. This marks a repeated pattern from the previous seminar in 2023, raising questions about transparency and information dissemination within the oil industry. While OPEC insists that the world’s reliance on fossil fuels will not diminish in the near future, criticisms regarding energy transition economics continue to arise. OPEC ministers categorically reject the concept of peak oil demand on the horizon, suggesting a sustained and growing appetite for fossil fuels until at least 2050.