Rising gas prices are ‘transitional premium’ under pressure from renewable teenagers, OPEC chief says

Dubai, United Arab Emirates – Rising gas prices are the cost of a transition to renewable energy sources, OPEC Secretary-General Mohamed Barcino told CNBC on Tuesday.

“I talked about the new premium in the energy markets because I called it the transition premium,” Barcino told CNBC’s Dan Murphy at a Gazette conference in Dubai.

The longtime oil tycoon has criticized what he believes is an overly emotional approach to energy policies and climate change, although he does not point the finger at what he calls “facts misrepresentation.”

Barbando said: “Climate change and energy transfer are supposed to be guided by science, so there is distortion of facts and science, and there is misinformation about these facts.

The government group on climate change is considered to be the most authoritative body on climate change and transition. We believe we are doing a great job in OPEC, they are producing very important, series of reports, but unfortunately these reports are being sidelined and the discussions are going on now, they are more emotional than the big ones. This is the work that this scientific body is producing for all of us.

At triple gas prices

OPEC’s words reflect a debate between policymakers and energy executives about the future of energy, renewables and climate. Many governments around the world, especially in the West, are pushing for fossil fuels, and those in the industry are trying to derail the market, hurt consumers, and ultimately be unrealistic.

World gas prices have tripled this year alone, he said.

The roots of inflation are in high demand and low supply, as high summer temperatures in the US increase the demand for air conditioning, and other parts of the UK increase the need for warmer temperatures in the spring.

A reading of a fuel pump in a fuel pump at the Sitgo gas station on Lancaster Avenue, Monday, September 20, 2021.

Ben Hasti | Media News Team | Getty Images

All of this has reduced gas supplies for the coming winter months, which means we will see more pressure on supplies and future prices.

Since the outbreak of the coronavirus, gas prices have been too low for about $ 2 million per million UK units or mmBtus. But as immunization campaigns expanded, the reopening of the economy and the resumption of travel increased demand.

‘A Load for Many Nations’

UAE Minister of Energy Suhail al-Mazruway told CNBC at the same event that although gas prices seemed high, they argued that they were too low to start.

Al-Mazruway said of the gas price: “It came from a very low area. I think if the current prices continue, they will be a burden on many countries and the interest side will not be ready to take such a price.

“We are seeing the right balance in terms of consumer capacity and a reasonable return to the developers and the producing countries,” he said, but said, “We are not there yet.”

Al-Mazuroi said the costs, guidelines and financial needs surrounding new energy projects are a barrier to any lower cost.

“This is a response to the previous low gas pressure,” he said. “Now, I think the market will be sustainable. There are challenges to funding new projects, challenges to IOS (international oil companies), and we need to have a realistic view of easing new restrictions for them. Projects. “

“I think we are in discussions with the industry, the companies and the consumers and some developers, and we hope that during the event discussions they will be able to announce new projects that will balance prices in the future,” he added.

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