Breaking the world’s hydrocarbons to fight climate change is the biggest challenge of this generation. Major OCDs, such as the EU Green Agreement or the UK’s future new petrol ban, will be banned. It is a challenge that drives members to take long-term strategies. However, demand for oil and gas continues to rise, focusing on major hydrocarbon producing countries. Last week, Iraqi Finance Minister Ali Alawi called on oil producers to invest in renewable energy.
At first glance, this may seem contradictory, but Iraq is still funding new oil projects. However, it is not surprising that this claim looks at the overall regional picture. The Gulf faces the prospect of an ‘oil spill’, forcing them to re-evaluate their economic base. As a result, the first shoots of the Middle East Green Power Competition are sprouting, the Iraqi statement is the emblem of this.
The outcome is still unclear, but it is a clear sign that the focus of major oil producers, such as Saudi Arabia or the United Arab Emirates, on growing their hydrogen cake is changing. Similarly, most Gulf states invest heavily in renewable energy sources, especially in this sunny part of the world.
The GCC countries are closely following the changing political views on hydrocarbons. Nerves are shocked by the tone of the droplet on the fuel and gas. The wise ones see this as an opportunity. A large climate circle hosted by US Climate Envoy John Kerry and his UAE counterpart Dr. Sultan al-Jaber shows the willingness of at least some of them to climb on a green train in this part of the world.
The direction of the journey is clear. Speaking on the trip, Carrie said, “The importance of a country of oil and gas [the UAE] Gathering a group of nations that many people think is unthinkable to deal with the climate change was a clear signal. ” Arab oil producers are severely disrupted without effective weather action on the ship, and people like Carrie know this.
It is a great diplomatic effort to convince Gulf states that their long-term needs are better understood by climate change. Some seem to be registering, for example the United Arab Emirates is keen to host COP28. Iraq’s finance minister’s recent positive statement on renewable energy could be seen as a major recognition that OPEC will not be able to fight the green tide.
There are still major economic issues. OPEC countries do not want to kill the goose that lays its golden eggs. However, these golden eggs are being used to finance a clean future. Middle East green investments are growing. This year, renewable investments have surpassed conventional energy projects in the region for the first time. Kesa 530.7GW to add renewable energy by 2030
These activities make GCC 2D Behind the United States alone is the world’s largest green energy development region. Enthusiasm must be curbed by the concerns about the efficiency of major infrastructure projects in the region. However, with the support of government-sponsored hydrocarbon biodiesel such as Edinock and Aramco, these investment shifts will have a lasting impact.
The problem is that the demand for oil is declining. The starting point eliminates the high hydrocarbon dependence on the local supply. Next, he invests in hydrogen projects supported by major solar or even wind power projects necessary for the production of blue hydrogen. Not only is it economically viable, but hydrogen can also be produced using existing hydrocarbon reservoirs that can be broken down.
Another major driver is a renewable energy plant that maintains a global powerhouse. Replacing the fuel level can be fully supported by green energy. United Arab Emirates and Saudi Arabia Along with this they pointed out movements in this direction They have invested billions In clean energy projects around the world. Finance Minister Ali Alawi is realizing that the genius of oil-producing Gulf states is becoming greener.
By Cyril Widdershoven for Oilprice.com
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