The heads of Russian energy groups Gazprom and Rosneft spoke at the 14th Eurasian Economic Forum in Verona, Italy. The two Russian business leaders blasted the so-called Green Transition as populist and useless. “The world will face climate change even if it reaches carbon neutrality goals by 2050,” said Rosneft CEO Igor Sechin, reported TASS. “The Earth’s climate has never been static, and even after reaching the carbon-neutral goals by 2050, humanity will still face climate changes,” he said.
At the same time, he remarked that energy transition to zero carbon is possible only if the stability of energy supplies and the development of new technologies are maintained. “The development of new materials is no longer an energy issue, but a much more serious issue of changing the structure of the economy. Despite the variety of plans to reach carbon neutrality, the energy transition will remain a pipedream without developing new technologies and materials. Even in the long-term renewable energy will not be able to completely replace traditional energy resources,” he said.
Supporters of complete refusal to invest in the oil and gas sector ignore the risks of market imbalance, Sechin went on. “This year has clearly shown that wrong decisions in the field of climate policy can lead to serious negative consequences for the entire global economy and society.”
Sechin believes that the climate agenda puts pressure on oil and gas prices, and not the OPEC Plus policy. “Pressure from climate activists stops the implementation of joint projects with international companies, which forces majors to cut investments in oil and gas production, redirecting funds to renewable energy. It is the climate agenda that is now putting pressure on the global oil and gas market,” he argued.
Meanwhile, the gas crisis may cause additional demand for oil in the amount of 1 million barrels per day, which could further increase oil prices, he declared. “According to Citi and Goldman Sachs, ultra-high prices for natural gas could create additional demand for oil in the amount of up to 1 million barrels per day, which will increase imbalance similar to gas, and will further increase oil prices,” Sechin explained.
Gazprom Chairman of the Board Viktor Zubkov warned that “we cannot ignore threats against gas, as a transition fuel, which we see in Europe. There are those who call for stopping investments in gas but prices are now beating all records—and yet, populists call for the Green Economy.”
“Gazprom is able to supply 1.7 billion cubic meters of gas a day to Europe. This year, we delivered 11 bcm of gas more than planned to Europe and we are ready to supply 55 billion more,” Zubkov declared, explaining that “long-term contracts not only give stability, but also involve large investment figures. By 2050, the gas share of the energy mix will grow by 57%,” Zubkov was quoted as saying by Italian media.
The 14th Eurasian Economic Forum in Verona is traditionally organized by the Roscongress Foundation, the St. Petersburg International Economic Forum, and the Italian non-profit association Conoscere Eurasia. The Oct. 28-29 forum involves Russian and Italian business leaders, politicians, experts and high-ranking foreign representatives. Russian President Vladimir Putin sent a message of greeting to the event.
