Guyanese President Dr. Mohamed Irfaan Ali has warned that the world is facing a widening and dangerous energy gap, driven by surging demand, uneven investment, and growing mineral constraints. He made these remarks while addressing the Offshore Technology Conference (OTC) 2026 in Houston, Texas, USA.
He urged global leaders, investors, and industry players to move beyond a narrow view of “energy transition” and instead pursue what he described as a pragmatic and inclusive model of “energy balance.”
Ali said the global debate on decarbonisation, renewables, artificial intelligence, and emerging technologies cannot be separated from a basic and pressing question: whether the world is producing enough energy, at a reliable cost, to sustain economic activity and human development.
“It is a question grounded in the daily functioning of the global economy. It is a question about whether factories can operate, whether hospitals can function, whether food can be produced and transported, whether homes can be cooled and heated, whether data can be processed, and whether economies can grow,” Ali said.
He pointed to data showing that while global energy supply has risen steadily since the mid-1960s, demand has accelerated sharply since 2010, creating what he described as a structural imbalance rather than a temporary disruption.
The post-COVID rebound, combined with rapid digitalisation and the growth of artificial intelligence, has further widened the gap, contributing to price volatility and energy insecurity across regions.
While renewable energy has expanded rapidly—growing more than five times faster than overall energy demand in recent years—Ali noted that fossil fuels still account for over 80 per cent of the global energy mix.
Coal and natural gas remain central to electricity generation, particularly in emerging economies, underscoring that the world is building a new energy system while still relying heavily on the old one.
“Coal, despite being the most carbon-intensive fuel, has seen significant growth in electricity generation, increasing by more than 70 per cent over the past decade.
“This growth has been driven largely by industrialisation in emerging economies, where coal remains the most accessible and affordable baseload energy source. Natural gas has also expanded in electricity generation, increasing by 26.6 per cent. Gas plays a critical role in balancing renewable energy, providing flexible and reliable power when solar and wind generation fluctuate,” Ali said.
Oil, he added, by contrast, has seen a steady decline in its role in electricity generation.
These trends highlight an important point: the energy transition is not a simple substitution of fossil fuels with renewables.
Ali also highlighted the scale of the financial challenge.
Global energy investment reached a record US$3.3 trillion in 2025, but he said current levels remain insufficient to meet climate targets.
To align with climate goals—particularly limiting global warming to 1.5°C—investment must increase dramatically.
“Many economies are already facing difficulties in meeting their own targets. To achieve this, the United States needs to increase annual investment by 76 per cent, European countries by 36 per cent, and China by just under 30 per cent. None of these figures take into consideration current global challenges and geopolitical realities.
“Global clean energy investment is highly concentrated, and I wonder whether it will face new, specific pressures,” Ali stated.
Beyond financing, Ali sounded a strong caution about mineral constraints, describing the energy transition as a shift from a fuel-intensive system to a mineral-intensive one. Electric vehicles, offshore wind, batteries, and grids require significantly higher volumes of lithium, cobalt, nickel, copper, and rare earth elements—resources that are finite, geographically concentrated, and environmentally costly to extract.
He warned that, without major advances in technology, recycling, and governance, the world risks replacing fossil fuel dependence with mineral dependence, creating new geopolitical and environmental vulnerabilities.
Mining-related water use, toxic waste, deforestation, and biodiversity loss, he said, already pose serious risks to communities and ecosystems.
Against this backdrop, Ali outlined Guyana’s approach, which he described as a deliberate dual-track strategy.
The country is developing its oil and gas resources to finance transformation, while simultaneously investing in renewable energy, grid modernisation, storage systems, and regional energy integration.
“We reject the false choice between development and environmental stewardship. Managed properly, they reinforce each other,” he said.
https://www.guardian.co.tt
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