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Vesna Marinkovic U.

The Annual Energy Dinner (CAEE) 2024 allowed to establish that it is difficult to speak about energy transition in a world where more than half of the consumption is based on hydrocarbons and their derivatives...

ISSUE 130 | 2024

Vesna Marinkovic U.

Pedro Miras Salamanca, President of the World Petroleum Council (WPC Energy), mentioned that the world consumes approximately 97 million barrels per day of oil, and it seems that this level of energy consumption will persist for a long time. He emphasized that at least in the short and medium term, a global change in the energy matrix is not feasible when more than half of the consumption is precisely in hydrocarbons.

"We have an energy matrix that is predominantly composed of fossil fuels globally," he said, underscoring that this situation will not change in the medium term and that hydrocarbon consumption will remain significant for a long time.

ON GLOBAL ENERGY CONSUMPTION

In this regard, he stated that global energy consumption is "voracious" and has already surpassed 600 exajoules, highlighting, however, that despite this impressive figure, there are still 800 million people without access to modern and quality energy, and it is urgent to address this issue. According to his projections, this can only be achieved through fossil fuels.

He also referred to the volatile scenario of fuel prices, noting that it has tended to stabilize around the $90 per barrel of oil level, which seems relatively comfortable for both producers and consumers. He added that globally, there is a trend towards reducing stocks.

He clarified, however, that this scenario has only deepened what would be the "oligopoly" of several nations, pointing out that 50% of all oil produced in the world comes from four countries: Canada, the United States, Russia, and Saudi Arabia.

“The world consumes energy voraciously. According to the Energy Institute, the world consumed 604 exajoules in 2023...”

"The next four countries, namely the United Arab Emirates, Iran, Iraq, and China, account for the remaining approximately 17%, so that approximately 70% of global production is in eight countries," he emphasized, asserting that discussing oil production is also discussing geopolitics.

"He stated that in the case of Bolivia, gas production represents around 0.3% of global hydrocarbon consumption, which remains a relevant position. However, he assured that there are indeed other factors contributing to market stabilization or destabilization."

"He acknowledged that there is currently a trend towards reduced investment in the sector, attributing this to the necessity of having stable, predictable regulation and technological neutrality that allows for long-term planning. 'For investments, bad regulation is preferable to unstable regulation,' he stressed."

"Miras Salamanca pointed out that there is 'much noise' surrounding the industry, suggesting it has no future, but in his view, market reality says otherwise. 'According to the Energy Institute, the world consumed 604 exajoules in 2023, and of that amount, which corresponds to fossil fuels, 82% is oil, gas, or coal,' he underscored, noting that more than three-quarters of global energy consumption is from fossil fuels."

"Finally, he provided important keys for countries and companies to navigate the path of 'energy transition' or as he framed it, 'energy evolution': (1) Investing in technology, (2) Always respecting the environment and surroundings, (3) Providing well-being through CSR programs that demonstrate the positive impact of projects on people, (4) Energy efficiency, and (5) Deepening communication of good measures and actions within the energy industry."

...deepen communication of good measures and actions within the energy industry."