OIL SECURITY FOR ALL

The IEA’s commentary also underlines a number of other critical points.

It notes that “investment uncertainty raises the risk of a supply-demand imbalance” and talks of how this can leave “oil companies facing difficult and commercially risky decisions.” This is true, but it is important to stress that the IEA’s talk of the need for no new oil and natural gas fields in its net zero pathway has contributed significantly to this uncertainty, which has the potential to lead to major energy chaos, not the desired energy security.

It highlights that oil supply security is threatened by an array of additional factors, such as geopolitics, extreme weather events and cyber-attacks. It is important to stress that these factors have the potential to affect all energies, as well as all economic sectors. The oil sector is not isolated in this regard.

It also references “the emerging security dimensions of clean energy transitions, such as critical mineral supplies.” Critical mineral supply chains will also come under pressure in the IEA’s net zero pathway, given that the IEA says a typical electric vehicle needs six times the mineral inputs of a conventional car.

It is incumbent on all industry stakeholders to focus on and contribute to oil security, in all facets, given the immense benefits that oil, and the petroleum products derived from it, continue to provide to people and nations across the world.

Click here and see more