Russia attacked an underground natural gas storage site in the Ukraine, but the Ukrainian state energy company Naftogaz said that supply had not been disrupted.
“We have sufficient backup capacities in place to mitigate any immediate impacts. The supply of natural gas to Ukrainian consumers remains unaffected by the attack,” the chief executive of Naftogaz, Oleksiy Chernyshov said on Facebook, as quoted by the Kiyv Independent.
The attack is the latest in a string of hits targeting energy infrastructure that plunged several cities into rolling blackouts as power utilities rushed to restore supply.
According to Reuters, the largest energy producer in the Ukraine, DTEK, has lost 50% of its generation capacity. Electricity exports were suspended, the country’s energy ministry said.
The news that a gas storage site has become the target of an attack might cause concern in Europe after the EU started sending extra gas to Ukrainian storage sites after its own filled up. This began last year, with the Ukrainian state energy company making available 10 billion cu m of capacity. This represents a third of the country’s total storage capacity.
Last year, according to the Kiyv Independent, foreign energy traders made us of some 2.5 billion cu m of that capacity and this year they started filling up the storage capacity earlier than usual, Naftogaz said this month. The company is hoping to see 4 billion cu of capacity utilized by European energy traders this year.
Most of the Ukrainian gas storage capacity is located in the western part of the country, which is far from the frontline and has not been targeted by Russian forces yet.
The storage sites are also deep underground, as Naftogaz’ Chernyshov explained, which makes them relatively safe from attacks.
Source: Oilprice.com
Two African Development Bank-supported projects have won awards at the IJGlobal Awards held in London, United Kingdom.
The Singrobo hydropower plant in Côte d’Ivoire, in which the Bank played the Mandated Lead Arranger role won the Power Deal of the Year award, while the Kom Ombo Solar plant, financed by the Bank as Co-MLA won the Energy Transition Deal of the Year award.
The Singrobo hydropower was the first hydropower IPP, and private sector-funded climate action investment to reach financial close in West Africa in December 2022.
The Bank financed €40 million out of the total cost of €174.3 million.
Currently under construction, the project comprises the design, development, operation, and transfer of a 44MW hydroelectric plant on the Bandama River, and a 3.5-kilometer transmission line and substation to evacuate power. A long-term power purchase agreement will see all the energy produced by the Singrobo plant sold to Compagnie Ivoirienne d’Electricite, the operator of Cote d’Ivoire’s national grid. Upon completion, the plant will contribute to Côte d’Ivoire’s energy goal of generating 42% of its electricity from renewable sources by 2030.
The Kom Ombo solar PV plant consisting of the design, construction and operation of a greenfield 200 MW solar PV plant in Egypt, reached financial close in 2023. The Bank provided a $27.22 million senior loan.
The project complements other African Development Bank energy operations in Egypt, including the Benban solar park, and the 150MW Egypt’s Feed in Tarriff (FiT) projects. Successful implementation of the project will increase Egypt’s installed power generation capacity from renewable sources, and further diversify the energy mix in line with the country’s energy transition strategy, and the Bank’s green growth agenda.
Commenting on the awards, Wale Shonibare, the Bank’s Director for Energy Financial Solutions, Policy & Regulation said, “These awards are a recognition of our continued efforts to deliver green, affordable, quality energy access to Africa, in line with the Bank’s energy and green growth agenda. We are encouraged to continue mobilizing private sector finance, and delivering innovative financial solutions that facilitate just energy transitions and address the unique financing needs of our regional member countries.”
The IJGlobal(link is external) independent, peer-reviewed awards recognize notable global greenfield and refinancing deals in infrastructure and energy, and the organizations that made them happen.
Source: https://energynewsafrica.com
Officials from the Tanzanian Ministry of Energy have paid a working visit to Ghana to study the operations of the National Petroleum Authority (NPA), the regulator of the petroleum downstream sector.
The five-day visit by the officials from the Tanzanian Ministry of Energy and the fuel agency was focused on NPA’s effective regulation and administration of the petroleum downstream, which according to them, proved to be convenient, cost-effective and worth emulating.
They were in Ghana from Monday, 18th March 2024, to Friday, 22nd March 2024, and were received by the Chief Executive of the NPA, Dr. Mustapha Abdul-Hamid, who welcomed them at an opening session, held on Monday at the NPA.
In attendance were the Deputy Chief Executive, Perry Okudzeto, directors, heads of department and some staff of the Authority.
In his welcome remarks, the Chief Executive expressed excitement to host the delegation and assured them that the NPA was more than willing and ready to share the NPA experience with them, especially in respect of how the Authority is administering the Unified Petroleum Price Fund (UPPF), which is a key area of interest to the Tanzanians.
He added that the Authority had put everything in place to make their five-day visit worthwhile, including the scheduled field-tours.
On his part, the Head of the delegation, Mr. Msafiri Mtepe from the Energy and Water Utilities Regulatory Authority, Tanzania, commended the Authority for the warm reception and expressed optimism that they would, indeed, have the best of learning experience on the Ghanaian model of petroleum regulation, which he said had become the envy of many countries in Africa and beyond.
He stated that the primary objective of their study visit was to appreciate the successful implementation of Ghana’s Unified Petroleum Price Scheme and other pricing mechanisms instituted in Ghana.
Dr. Mustapha Abdul-Hamid, Chief Executive Officer of NPA making a point during discussion with the Tanzanian delegation. With him is Mr. Msafiri Mtepe, Head of the delegation.
In the course of their stay in Ghana and with the NPA, many formal engagements and sessions were held with technical persons at the Authority, focusing on a wide range of subjects on relevant aspects of Ghana’s petroleum value chain.
There were presentations on various subjects, including Ghana’s pricing policy objectives, the UPPF, legal framework for petroleum regulation, among others.
The delegation, whilst in Ghana, visited the Ministry of Energy where they were taken through Ghana’s petroleum downstream policies.
They were received by the Chief Director, Mrs. Wilhelmina Asamoah, on behalf of the Minister of Energy.
The delegation also embarked on field visits to the BOST terminals in Tema and Akosombo to acquaint themselves with some of the practical operations of the NPA and other key actors in Ghana’s petroleum downstream.
Source: https://energynewsafrica.com
The United States has repeatedly urged Ukraine to halt its drone attacks on Russian oil refineries due to Washington’s assessment that the strikes could led to Russian retaliation and push up global oil prices, the Financial Times reported on Friday, citing sources familiar with the exchange.
The White House has been urging Ukraine’s military intelligence and state security service to reconsider the drone attacks, which have intensified in recent weeks, according to FT’s sources.
The attacks have reduced Russia’s refining capacity and driven oil prices higher this month. Early on Friday, Brent Crude prices traded at above $85 per barrel, while the U.S. benchmark, WTI Crude was at $81 per barrel, which is set to further raise U.S. gasoline prices amid rising demand, refinery maintenance, and falling stocks.
With gasoline demand rising, U.S. gasoline prices increased last week for a third week in a row, GasBuddy data showed earlier this week.
This doesn’t look good at all for the U.S. Administration in an election year in which President Joe Biden is expected to seek re-election in November.
Ukrainian drone attacks on Russian refineries in recent weeks have taken out a much as 600,000 barrels in daily processing capacity in Russia, according to commodity trading major Gunvor.
“It is significant because obviously this is gonna hit the distillate exports straight away,” Gunvor chief executive Torbjörn Törnqvist told Bloomberg on the sidelines of CERAWeek.
“So that will probably take down exports by a couple of hundred thousand barrels, so to me it’s a distillate problem,” the executive added.
Lower refining capacity in the second quarter, due to refinery maintenance and emergency repairs following the attacks, could be one of the reasons why Russia said it would focus on cuts to oil production instead of exports in its voluntary supply reduction as part of OPEC+ in the second quarter, analysts say.
Ghana’s largest state power generation company, Volta River Authority (VRA), has rejected claims by the Independent Power Producers (IPPs) Ghana that it is part of the reasons why Ghana is experiencing regular power outages.
According to the VRA, the statement by the IPPs is not only erroneous but also misleading.
Dr. Elikplim Kwabla Apetorgbor, Chief Executive Officer of Independent Power Generators, Ghana and Mr Kwame Asare Obeng popularly known as A-Plus accused the VRA of focusing on exporting power to neighbouring countries and not meeting its domestic obligations.
A-Plus, on a Facebook page, told Ghanaians to blame VRA and GRIDCo instead of the ECG for exporting power to Ghana’s neighbours.
Dr Elikplim Kwabla Apetorgbor, on the other hand, noted that although the VRA has been tasked to explore the export market to reduce the burden of idle capacity on the government, it must do so within the law, adding that it is a regulatory requirement to ensure the domestic demand is met whilst maintaining the set 18 per cent reserve margin.
“It is a great disservice to mother Ghana and Ghanaians for VRA to be exporting the most affordable hydro generation to neighbouring countries– Burkina Faso, Togo and Benin whilst the Ministry of Energy, PURC and ECG remain unconcerned and force the Ghanaian taxpayers to pay for the expensive thermal generation and also sleep in the dark,” he said.
However, VRA, in a statement on Sunday, March 24, 2024, indicated that the claim that it is not meeting its power supply obligation to Ghana is false.
“The VRA wishes to state that since 1972, the Authority has been supplying power to neighbouring countries without reneging on its mandate to deliver reliable and affordable power to Ghana; and this the Authority continues to do,” parts of the statement read.
“Also, it is important to mention that the allocation of the power generated from the Akosombo and Kpong hydropower stations is supervised by the Electricity Market Oversight Panel (EMOP) and not the VRA,” the company added.
VRA explained that as a result of this arrangement, the Ghanaian market is always prioritised in power allocation.
This is by government policies to ensure long-term optimization of the nation’s hydro resources, it added.
VRA assured the general public and all other stakeholders that it will continue to prioritise electricity supply to the Ghana market in line with its mandate, government policies and regulatory obligations.
Source: https://energynewsafrica.com
The outgoing The Gambian Minister for Petroleum and Energy Abdoulie Jobe has held a meeting with the incoming Minister, Nani Juwara, and handed over the Ministry to him in a short ceremony that was attended by many staff of the Ministry.
The Gambian President Adama Barrow, last Friday,, March 12, 2024, reshuffled his appointees with Minister for Petroleum and Energy Abdoulie Jobe being moved to the Ministry of Tourism and Culture.
Nani Juwara was the Managing Director of National Water and Electricity Company (NAWEC) and was elevated by the President to occupy the Ministry of Petroleum and Energy, one of the top-most ministries in the country.
Nani Juwara worked at NAWEC for 30 years.
In a post on the Ministry’s Facebook sighted by this portal, it reads: “The former Minister of Petroleum and Energy, Honorable Abdoulie Jobe, held a handing over ceremony for the new Minister Honorable Nani Juwara.
“Honorable Jobe in his tenure as Minister of Petroleum and Energy has revolutionized the sector and created a legacy and work environment like no other.
“Honorable Nani Juwara has spent almost 30 years in NAWEC and he is sure to bring a world of knowledge and expertise that will aid in the continuance of the great work that the Ministry is doing,” the post concluded.
Source: https://energynewsafrica.com
The West African Gas Pipeline Company Limited (WAPCo) has resumed gas delivery at its Regulating and Metering Station at Tema, Accra, after a system shutdown.
A statement issued by the company mentioned that at about 10.30pm on Friday WAPCo’s Tema facility completely shut down due to a system glitch.
“our engineers worked assiduously through the night, and we resumed gas delivery to our customers in Tema at around 6.30am this morning,” the company said.
WAPCo said it is committed to delivering safe and reliable services and is investigating the root cause of the problem to prevent a recurrence.
“WAPCo is grateful to its key stakeholders for their patience while the system was being fixed and regrets any inconvenience caused, especially to our customers in Tema that rely on WAGP gas for power generation,” the statement concluded.
Members of Parliament have hatched a plot to end Kenya Power monopoly by giving Kenyans the leeway to connect power without buying electricity meters from the utility firm.
The National Assembly Energy committee said it is developing a Bill that will ensure there are more licensed and authorised entities to sell electricity meters to ensure that consumers do not depend on KPLC for the product.
Committee chairman Vincent Musyoka revealed the plan during a meeting with the management of Kenya Power to discuss a number of queries raised by the Auditor-General for financial year ended June 2022/2023.
Among the issues flagged in the report are 21,000 consumers who have been waiting for KPLC to connect them to the grid but haven’t been successful due to a shortage of meters.
To cure such, the committee says it will remove all barriers that deter other firms from selling the meters directly to Kenyans.
The lawmakers say Kenya Power should not be the only authorised dealer for the meters.
However, the meters that will be sold by other dealers will have to be coded by Kenya Power and certified by the monopoly’s engineers before installation.
“We will have shops across the country selling meters to Kenyans, so that you just walk into a shop, buy the meters and call an authorised Kenya Power engineer to connect the electricity for you without necessarily going to Kenya Power offices,” Mr Musyoka said.
“This will not only increase Kenya Power revenues as they will have more people to collect power from but also reduce the time Kenyans have to wait to have electricity. For instance, we are now dealing with people who have waited for power for 11 years yet they have already paid,” the chairman said.
“We are working on a Bill as a committee and will soon be introduced to the House. It will contain all these changes,” Mr Musyoka said.
The committee dismissed assertions by Kenya Power that it’s the shortage of meters causing connection delays.
Source: Business Daily
Angola’s 26.13 megawatts photovoltaic plant located in Saurimo, Lunda-Sul Province, is expected to commence operation by the end of March, 2024, the secretary of State for Energy, Arlindo Carlos has said
The project is being built on an area of 65 hectares, under the responsibility of the South African and Angolan company, ‘Sun África’ and ‘MCA’, respectively.
Budgeted at €38.839.000 the project includes a total of 44,850 solar panels, which will benefit 171,565 people in the city of Saurimo.
According to the director, who was speaking to the press at the end of a visit to the city of Saurimo, the photovoltaic plant is currently in the testing phase and will be fully operational within a few more days.
Arlindo Carlos assured that the Ministry of Energy and Water will expand the supply of electricity in other locations, such as Cacolo and Muconda, with a view to overcoming the deficit that still exists in that province.
The visit by the secretary of State for Energy, accompanied by by the deputy-governor for Technical Services and Infrastructure, Cláudio Pemessa, and the ENDE and PRODEL’s CEO, covered the photovoltaic plant in Saurimo, Nhama, Txicumina and the construction of “UPS 01”.
With an estimated population of more than 534,000 inhabitants, the city of Saurimo is supplied with a variable power of 19/25 megawatts of energy, supplied by the Nhama and Txicumina thermal plants.
Currently, the National Energy Distribution Company (ENDE), in Lunda-Sul, has a number of 30,600 registered customers, of which 1,700 are on the prepaid system.
Source: https://energynewsafrica.com
The Nigerian National Petroleum Company (NNPC) Ltd. has reiterated its commitment towards utilising Nigeria’s abundant gas resources to trigger Nigeria’s industrialisation and economic development.
NNPC Ltd.’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, disclosed this during a Panel Session at the ongoing 2024 CERAWeek Conference in Houston, the United States, on Tuesday.
Eyesan, whose session addressed the theme “What are the Choices for Upstream Strategies?” said Nigeria is a predominantly gas-rich country which boasts over 200TCF of gas that can be leveraged for the country’s industrialisation and economic development.
She noted that NNPC Ltd. plans to deepen gas utilisation domestically for industrialization and, ensuring that the entire country feels and optimises the use of the resource.
She said the Company is vigorously opening avenues for infrastructural gas development through various gas projects spread across the country.
“Our focus is how do we move from a predominantly oil player to a gas player and, not just for gas for the sake of gas but gas for power generation, and for industrialisation, “she stated.
Eyesan observed that NNPC Ltd. is also focused on emission reduction and gas flare-out. “We want to capture all gas flared, utilise it and for domestic use and ultimately increase our energy transition footprint,” she said.
“NNPC Ltd. is keying into the government agenda of using gas as a transition fuel, and for us, we want to ensure not only the domestic gas market but we also expand that to the region and internationally,” she said.
While calling on African countries to collaborate with one another in order to ensure even distribution of energy resources, Eyesan said collaboration is key as not all countries within the sub-region are endowed with equal proportions of energy resources.
“For us to ensure that we continue to subsist within the sub-region, we must be willing to work collaboratively and ensure that there is an even distribution of the energy resources we have across the sub-region.”
On energy transition, Eyesan stated that the subject has evolved over the years, adding that for Sub-Saharan Africa, the narrative has been on how to address the energy poverty issue, while for Nigeria, the NNPC Ltd. will continue to look at areas where it has the competitive advantage to define the strategy.
Other energy experts on the panel are the Chief Upstream Strategist, Energy, S&P Global Commodity Insights, Bob Fryklund; the President of Pathways Alliance, Kendall Dilling; and the Executive Vice President, Exploration and Production International, Equinor, Philippe Mathieu.
Source: https://energynewsafrica.com
The former Vice President of Energy for the Africa region at Hyve Group, organizers of African Oil Week (AOW), Mr Paul Sinclair has joined the Advisory Board
of African Energy Chamber.
With over 20 years of experience and having led several large-scale events since 2002, Sinclair brings a wealth of commercial expertise to the Board.
Sinclair was CEO of AOW for seven years and stepped down in mid-June 2023.
The African energy sector needs support from target driven and commercially and strategically focused leaders and experts to attract confidence from investors and sponsors seeking to participate in a transparent and dedicated industry, and the AEC welcomes his insights and expertise.
Representing the voice of the African energy sector, the Chamber steers the direction of Africa’s oil and gas industry and navigates the complexities of the energy transition with a transparent, ethical and focused approach.
As AOW continues to misguide African stakeholders and create a negative impression of Africa’s oil and gas industry, the Chamber will continue to promote best practices that support the interests of Africans with support from within the continent.
In his newly appointed position, Sinclair will be tasked to attract investment into the African continent. As a member on the Advisory Board, he will be well positioned to map a sustainable and realistic strategy for the Chamber to ensure Africa retains control and ownership of its natural resources sector.
“Investing in our economies here in Africa requires responsible management and best practices and standards. I laud Paul Sinclair’s ascension to the Chamber’s Advisory Board as a win for the sustainable growth of our people and I have no doubt that his participation on the board will chart a new energy course for Africa,” states AEC Executive Chairman NJ Ayuk.
Sinclair’s addition to the Advisory Board strengthens its capabilities, given his expertise in international project management.
The Board plays a vital role within the AEC, providing advice on Africa’s regulatory frameworks while advocating for a competitive energy market and driving sustainable growth and investment.
As such, Sinclair’s expertise in contract negotiation, management and delivery aligns seamlessly with the group’s objectives.
Source: https://energynewsafrica.com
Israel’s NewMed Energy reoorted on Tuesday that natural gas exports from the Leviathan fieldto Egypt increased by 28 percent in 2023.
The company reports that the exports jumped from 4.9 billion cubic meters (BCM) in 2022 to 6.3 BCM in 2023.
Israel Katz, former energy minister, approved the increase in exports to Egypt last year. For 2026, he projected an annual production increase of six BCM – about 60 percent over the current volume. “3.5 BCM of which will be directed in favor of Egypt,” the report stated.
“The expansion of the total export quota to Egypt was increased by 38.7 BCM over 11 years,” the Israeli Ministry of Energy’s August announcement read.
“The export permit was granted under the comprehensive framework approved by government decisions … and in consultation with the Director of the Natural Gas Authority. In addition, an additional increase of 0.5 BCM per year is being considered.”
The ministry noted that, in addition to enabling production expansion, the new exports are expected to derive billions of dollars in bonus revenues for Israel, increase energy ties with Egypt and other regional players, and strengthen Israel’s geopolitical status.
Furthermore, the report adds that “on December 14, 2023, the partners in the Tamar reservoir announced that the Ministry of Energy approved them to increase the export permit of the reservoir from 38.7 BCM … to 43 BCM.
This amount will make it possible to increase the maximum amount of additional gas allowed for export to Egypt from 3.5 BCM per year to 4 BCM per year. As of the valuation date, no agreement has yet been signed. The export is subject to the aforementioned export permit.”
NewMed reported that Leviathan’s partners, including Chevron, will invest $568 million to upgrade the field. In the latter half of 2025, annual production will increase from 12 BCM to 14 BCM. The company reported a fourth-quarter profit of $102 million, down significantly from $141 million the previous year.
Egypt–Israel tensions have been on the rise in recent months over Tel Aviv’s plan to push Gazans into the Sinai Peninsula to continue with their plan of invading Rafah.
Cairo has called on Washington, which has previously condemned the plan, to send a clear message to its regional ally not to move forward with the Rafah invasion.
It says that “it is not enough to state opposition; it is also important to indicate what if that position is circumvented, what if that position is not respected.”
However, following multiple investment deals into Egypt by other regional allies of Israel and a boost in the International Monetary Fund (IMF) loan to be granted to Egypt, the North African nation is constructing an “isolated security zone, “something which local rights groups are calling Cairo’s preparation for an influx of Palestinian refugees.
Source:Oilprice.com
If oil disappeared tomorrow, there would be no more jet fuel, gasoline or diesel. Internal combustion engine automobiles, buses, trucks, lorries and coaches would be stranded.
Airplanes powered by jet fuel would be grounded. Freight and passenger rail powered by diesel would halt. People could not get to work; children could not get to school.
The shipping industry, transporting both freight and passengers, would be devastated.
There would be no point calling emergency services. The majority of ambulances, fire engines, police cars, rescue helicopters and other emergency vehicles would be stationary.
Most phones and computers would also vanish as their plastic components derive from oil, so it would be a struggle to find a way of communicating with the emergency services anyway.
The construction sector would halt, as diesel powered vehicles would be stranded: excavators, bulldozers, dump trucks, cranes, cement mixers, rollers and compact loaders would remain stationary. New homes or buildings could not be built or receive vital maintenance work.
If oil disappeared tomorrow, petroleum based-products would vanish with it. This would impact the production of electric vehicles (EVs).
Aside from the supply chains disruption, the structure of lithium-ion batteries would be affected.
A lithium-ion battery has four parts: an anode, cathode, electrolyte and a separator. Separators are engineered microporous membranes, typically made of polyethylene or polypropylene petroleum-based products. The petroleum-derived synthetic rubber used on car and bicycle tyres would cease to exist.
If oil disappeared tomorrow, food production would be devastated. Many of the vehicles necessary in agriculture ̶ tractors, mowers, combine harvesters, balers, sprayers and seeders ̶ would stop working.
Food packaging necessary for storage and preservation would not be available. Petroleum coke, a by-product in oil refining, is used as a feedstock in manufacturing synthetic fertilizers, which are important in increasing crop yields. Food shortages and the knock on impacts would likely ensue.
If oil disappeared tomorrow, it would be catastrophic for health services everywhere. Staff would lack mobility, and essential supplies would be stranded. Beyond transportation, petroleum is an essential feedstock for pharmaceuticals, plastics and medical supplies.
Latex gloves, medical tubes, medical syringes, adhesives, some bandages, disinfectants, hand sanitizers, cleaning agents, prosthetics, artificial heart valves, resuscitation masks, stethoscopes, MRI scanners, insulin pens, infusion bags, medication packaging, face-masks, and Personal Protection Equipment are largely derived from petroleum-based materials.
The equipment used in medical research such as microscopes, test tubes and goggles usually contain petroleum-derived components.
The chemical synthesis that creates aspirin begins with benzene, which is derived from petroleum. The benzene is converted to phenol, which in turn is converted to salicylic acid. This is then transformed into acetylsalicylic acid, which the world knows as aspirin.
It is difficult to conceive of a modern hospital without this range of essential petroleum-based products.
If oil disappeared tomorrow, the renewables industry would be impacted. The fibreglass, resin or plastic necessary for the construction of most wind turbines, would disappear. The ethylene used in the production of solar panels would vanish.
Most of the mining vehicles ̶ large trucks, rotary drill rigs and rock drills ̶ necessary to extract the critical minerals upon which the production of solar photovoltaic plants, wind farms and EVs depend, would become stationary.
If oil disappeared tomorrow, homes would be transformed beyond recognition. There is the possibility roofs would collapse, for example, if bitumen was a key product. Other materials used in insulating homes would disappear.
If you relied on heating oil to keep warm, that would go. The linoleum flooring and tiling would be impacted. Painting the walls would be a challenge. Furniture, pillows, rugs, curtains, dishes, cups and non-stick pans all are likely to be made from petroleum-derived products too.
It would be a challenge to stay clean or keep homes clean, if oil disappeared tomorrow. Laundry detergent and dish detergents usually derive from petroleum-based products.
Soap, toothpaste, hand-lotion, deodorant, shampoo, shaving cream, eyeglasses, contact lenses, combs, brushes; all normally contain petroleum-derived products.
It would be a struggle to get anywhere, as the asphalt that paves roads and footpaths would vanish.
If oil disappeared tomorrow, millions of jobs would be lost. Tax revenues would be depleted. Industrial production would crimp. Economic growth would go into reverse. The plight of the fuel poor would be worsened.
This is not even the full list of everything that would be impacted, in such an unthinkable scenario.
Yet, despite these realities, there are calls saying ‘Just stop oil,’ ‘Keep it in the ground,’ or ‘don’t invest in new oil and gas projects.’
Of course, everybody wants to see greenhouse gas emissions reduced. OPEC believes that technological solutions and efficiency improvements can play a vital role. The oil industry is already proactive in this regard.
We need to be cautious of endangering the present, in the name of saving the future. It is important we all fully understand the immense benefits that oil, and the petroleum products derived from it, continue to provide to people and nations across the world.
In an important step forward for collaboration among international organisations to address the climate crisis, the United Nations Framework Convention on Climate Change (UNFCCC) and the International Energy Agency (IEA) today announced a new phase of cooperation to drive progress on the energy commitments made at the recent COP28 climate summit in Dubai with the goal of limiting global warming to 1.5 °C.
UNFCCC Executive Secretary Simon Stiell and IEA Executive Director Fatih Birol made the announcement at the start of the Copenhagen Climate Ministerial, where nearly 30 ministers and climate leaders from around the world are meeting to discuss the implementation of the COP28 result and key topics for COP29 in Azerbaijan.
Under the new phase of cooperation, the UNFCCC and IEA will focus on three key areas – tracking and reporting on the energy-related outcomes of the first Global Stocktake at COP28; building consensus on actions to deliver 1.5 °C-aligned energy transitions; and supporting the next round of Nationally Determined Contributions (NDCs) under the Paris Agreement.
In addition, the two organisations will deepen their existing cooperation on data and capacity building.
The first Global Stocktake decision agreed by nearly 200 countries at COP28, also referred to as the UAE Consensus, included significant commitments on energy that the IEA had called for ahead of the summit, such as the new global 2030 goals of tripling renewable energy capacity, doubling energy efficiency progress and substantially reducing methane emissions.
COP28 also delivered a recognition of the need to transition away from fossil fuels in energy systems in a just and equitable way, including phasing down unabated coal power.
The UNFCCC and IEA will work together to identify appropriate metrics for tracking global progress toward these goals and provide updates that inform and motivate global action to achieve international climate commitments.
As part of this, the IEA will produce a report that takes stock of international progress against the energy commitments made at COP28, to be published ahead of the COP29 summit.
“Following the COP28 outcome, we now need to make sure commitments are delivered upon – where we make the text of agreements, a reality,” said Mr Stiell, the UNFCCC Executive Secretary.
“I am looking forward to enhancing the cooperation between IEA and UNFCCC on tracking progress regarding the achievement of new pledges on energy transition, data exchange and capacity building for new NDCs, while supporting governments to implement existing policies and measures during this critical decade.
“Now is when countries will have to double down to reduce all greenhouse gas emissions from all sectors while transitioning away from fossil fuels in an orderly, just and equitable manner.”
“This new era of cooperation will bring together the UNFCCC’s international convening power and deep technical expertise on climate change with the IEA’s unparalleled energy data, analysis and policy expertise,” said Dr Birol, the IEA Executive Director.
“COP28 delivered the first ever global agreement on energy transitions aligned with the 1.5 °C goal – a watershed moment. The UNFCCC and IEA are joining forces to ensure that these commitments are turned into action at the pace and scale needed to ensure just, equitable and affordable energy transitions that achieve the world’s shared climate goals.”
Mr Stiell and Dr Birol also said they will work together to support positive outcomes from the new series of COP-IEA High-Level Energy Transition Dialogues, to be held over the course of 2024 to prepare for the COP29 summit in Baku.
Initiated last year under the United Arab Emirates’ Presidency of COP28, the High-Level Dialogues were co-chaired by the IEA, with the support of the UNFCCC and IRENA, and will continue this year in partnership with Azerbaijan’s Presidency of COP29.
These roundtable discussions will provide an important forum for international climate and energy leaders to discuss and establish priorities ahead of COP29 in November – and to share experiences and expertise as they develop transition plans and new NDCs.
To support the next round of NDCs, the UNFCCC and IEA will also work together to provide policy advice and technical support on the development of energy-related targets that are in line with the Global Stocktake outcome and the goals of the Paris Agreement.
This will include the IEA contributing to the UNFCCC’s newly announced NDC 3.0 Navigator initiative.
The UNFCCC and IEA will build on their existing Memorandum of Understanding to broaden and deepen cooperation on greenhouse gas emissions data and national data capacity building.
This will include joint delivery of workshops with countries to improve national energy data, and to enhance the effectiveness and transparency of energy and climate decision making.
The two organisations will coordinate their activities more closely to facilitate better engagement and alignment of the ambitions and actions of climate and energy decision makers.
Source: IEA
