Page 12 - FSUOGM Week 21 2021

FSUOGM POLICY FSUOGM

GECF rejects IEA call to end

upstream investment

GLOBAL THE Gas Exporting Countries Forum (GECF) upstream development and directing investment
has released a statement rejecting the finding resources instead towards expensive decarboni-
Natural gas is a of a report released by the International Energy sation options and technologies, some of which
destination fuel, the Agency (IEA) last week, which concluded that are yet to be proven.”
GECF argues. there should be no further investment in oil and The GECF also drew attention to the fact that
gas production as the world strives towards net- the report’s net-zero scenario assumes a rapid
zero emissions. deployment of net-zero technologies that are not
In its Net Zero by 2050: a Roadmap for the currently available on the market.
Global Energy Sector, the IEA predicted that in “This technology challenge is further exac-
a net-zero scenario, natural gas demand would erbated when considering the developing coun-
start falling in the mid-2020s, from a peak of 4.3 tries that have no access to technologies and
trillion cubic metres to 3.7 tcm in 2030 and 1.75 financial resources,” it said.
tcm in 2050, or 55% less than the level in 2020. Ending upstream investment in gas can
As such, it concluded that “no new natural gas jeopardise energy security and prevent some
fields are needed beyond those already under countries from accessing competitive and clean
development. Also not needed are many of the energy sources, it said. Some $571bn of invest-
LNG liquefaction facilities currently under con- ment was spent on upstream operations between
struction or at the planning stage.” 2010 and 2019, up 79% versus the level in the
The GECF, comprised of the world’s biggest 2000s, the GECF said. A further $472mn went
gas-producing countries, instead projects that on gas transportation and trade infrastructure,
gas will increase its share in the global energy up 67% on the previous 10-year period.
mix to 28% from 23% today, given its “essential” “Regardless of any financing structural
role in helping countries decarbonise. The group changes due to market ambiguities, the level of
estimates that primary energy demand will rise investment is expected to grow in the long term,”
by 24% over the next three decades, driven by the GECF said. “It is estimated that total gas
economic and population growth. investment, including upstream and midstream
“The only approach to achieve energy mar- activities between 2020 and 2050, will reach
ket stability, responsible and inclusive economic about $10 trillion, representing a compound
growth, as well as sustainable development goals, annual growth of 1.26% from a total of $258bn
is to consider natural gas as a destination fuel that in 2020 to $375bn in 2050.”
will always be an essential element in achieving a The GECF’s members include Algeria,
lower-carbon energy system,” it said. “The GECF Bolivia, Egypt, Equatorial Guinea, Iran, Libya,
believes in the right of countries, particularly Nigeria, Qatar, Russia, Trinidad and Tobago and
the developing economies, to have access to an Venezuela. It also counts Angola, Azerbaijan,
abundant, affordable and clean source of energy. Iraq, Kazakhstan, Malaysia, Norway, Peru and
We don’t condone restrictions of policies on the UAE as observers. ™

P12 www. NEWSBASE .com Week 21 26•May•2021