Oil and gas producers have a golden opportunity to present their case at COP26

The UN Climate Change Conference (COP26) is underway in Glasgow to discuss the ongoing climate challenges and ways to reverse the damage done to the climate by mankind. People with differing views are attending the event, all of them with only one goal in mind: Saving the planet for our future generations.

Unfortunately, not all the discussions and debate that will take place during the marathon event will be scientific in nature. Some of the debates will be political, while some will be ideological as well.

There will be some people who, no matter what experts say or believe, will always chant slogans against fossil fuels. These elements will be ready to blame fossil fuels for all the damage done to the global climate, without pondering about the impact of widespread deforestation and other factors that contributed to climate change.

In such a situation, the onus lies on oil and gas producers to coordinate closely among themselves and with other stakeholders to present a united front during the COP26 debate to make sure the discussions take into account all the factors responsible for the deterioration of the global climate. 

They should present their case backed by scientific reports that state the world needs to continue its reliance on fossil fuels for decades to come, before renewables can pick up and substitute fossil fuels. In addition to that, transition to green energy will require considerable support from fossil fuels.

The rise of fuel prices lately, partially due to a lack of investment in the oil and gas sector, is a clear proof that any recommendation that comes out from the COP26 should take into account the fact that the world will need to continue to invest in oil and gas until it is ready for a green transition. 

Otherwise, the world will have to live with high energy prices and a shortage of energy, which in turn will cast a gloom on the world economy that depends on energy to power its growth.

OPEC held several consultative discussions during 2021 to come up with pragmatic and inclusive solutions ahead of the COP26.

OPEC secretary-general said at the opening of a workshop held in July 2021 in Vienna: “In less than a few months, the 26th meeting of the Conference of Parties will begin in the UK. The need for concerted action was recognized at the highest policy levels and by key global energy stakeholders, a reflection of the central importance of oil to the worldwide economy and our way of life.”

Saudi Arabia can take the leadership of oil and gas producers during the COP26 and demonstrate to the world that they are serious about addressing climate change.

Fuad Al-Zayer

This is so true, as most forecasts see the global economy doubling in size, the world’s population growing by more than 20 percent, and energy demand rising by around 25 percent between now and 2045.

As a result, the oil industry will need to have access to capital to innovate and to support sustainable stability. The oil industry has decades of experience in driving innovation and efficiency and the world will need to capitalize on these capabilities, rather than set them aside, in order to address future challenges during the era of green energy transition.

Energy access in the context of sustainable development is another key point that should be considered when coming up with the solution for climate change. 

The global conversation on climate change needs to take into account energy poverty, as identified in UN Sustainable Development Goal No. 7, where more than 600 million people have little or no access to electricity in Africa alone and around 900 million lack safe and clean cooking fuels. 

The scale of this challenge requires a portfolio of energy, including oil and gas. The world’s economic recovery will not be complete so long as hundreds of millions of people live in energy poverty.

Emission reduction in the energy sector is no doubt necessary to reduce the impact of climate change.

It is crucial to remember that other human activities, such as agriculture and deforestation, also contribute to the spread of greenhouse gas emissions and should also be considered during the COP26 debate.

Non-discriminatory and balanced mitigation action could, therefore, lead to more inclusive and sustainable development.

Also, carbon capture, utilization and storage technologies, in combination with hydrogen and other production processes, offer great potential to reduce emissions in the industry. More cooperation between producers and consumers is needed to make CCUS safe and cost-effective and enhance its potential and reach. CCUS technologies are essential to decarbonize the hard-to-abate sectors such as cement, chemicals, and the iron and steel industries.

The world will need to hear that there is no single pathway to reach net-zero emissions, and that solutions will require broad-based and inclusive approaches away from ideological positions.

Cooperation and coordination among energy-exporting countries will position them best to address the challenge of climate change and maximize the synergies of available mitigation options.

The Gulf Cooperation Council, in general, can take leadership in this needed cooperation. Saudi Arabia, specifically, is in a great position to showcase its commitment to address climate change through its circular carbon economy platform, and the move toward clean energy through simultaneous steps such as CCUS and blue hydrogen projects. 

The Kingdom also recently launched the Saudi and Middle East Green Initiatives to encourage innovative and sustainable solutions to fight climate change.

The Saudi Green Initiative aims to increase green areas, alleviate carbon emissions, reduce pollution and land degradation, and preserve marine life. The program calls for the planting of 10 billion trees in the country in the coming years and restoring 40 million hectares of degraded land.

Saudi Arabia can take the leadership of oil and gas producers during the COP26 and demonstrate to the world that they are serious about addressing climate change.

It is crucial to remind attendees in Glasgow that other human activities, such as agriculture and deforestation, also contribute to the spread of greenhouse gas emissions and should be considered during the COP26 debate. And that non-discriminatory and balanced mitigation is needed toward a more inclusive and sustainable development.

This will not be an easy task, as the discussions in Glasgow will surely be passionate, while some will unfortunately be ideologically driven.

• Fuad Al-Zayer is an independent energy consultant based in Alkhobar.