Big oil firms assert that oil and gas will remain the dominant energy sources for many decades to come

Major industry players emphasized at the Energy Asia conference in Kuala Lumpur that oil and gas will continue to be prominent energy sources for decades, driven by a slow energy transition.

John Hess, CEO of Hess Corporation, highlighted the importance of oil and gas for the foreseeable future, stating, “The key takeaway from this conference is that oil and gas will be necessary for decades to come.”

Hess further emphasized the challenges of the energy transition, stating, “The energy transition will be a lengthy process, requiring substantial investments and the development of yet-to-be-invented technologies.”

According to Hess, the global investment in clean energy falls far short of what is required, with a staggering annual shortfall of $4 trillion.

The International Energy Agency predicts that global investment in clean energy will reach $1.7 trillion in 2023.

Hess emphasized that oil and gas play a crucial role in maintaining global economic competitiveness and facilitating an affordable and secure energy transition.

Hess predicts a more positive outlook for the oil market in the second half of the year, projecting a production increase of 1.2 million barrels per day by 2027. He identified the underinvestment in the industry as the world’s biggest challenge.

He emphasized that there is a fundamental shortage in the global energy supply, encompassing oil, gas, and clean energy.

During the conference’s opening address, OPEC’s Secretary General, Haitham Al Ghais, projected that global oil demand would reach 110 million barrels per day by 2045, driven by rapid urbanization in the coming years.

In a recent email exchange on Tuesday, ExxonMobil, the largest oil producer in the United States, reaffirmed the same perspective.

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The company foresees oil retaining its position as the dominant primary energy source for at least the next two decades, driven by its critical role in commercial transportation and the chemical industry.

According to Erin McGrath, ExxonMobil’s senior advisor for public and government affairs, liquids are expected to maintain their position as the world’s primary energy source in 2050, despite a deceleration in demand growth after 2025.

According to ExxonMobil’s senior advisor Erin McGrath, the demand for liquids is projected to increase by approximately 15 million barrels per day by 2050. The majority of this growth is expected to come from emerging markets in Asia, Africa, the Middle East, and Latin America.

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