Oil CEOs clash with the U.S. Energy Dept. official over energy transition World Petroleum Congress in Houston.
A top energy executives in the U.S. Energy Department official said that the industry has a moral obligation to address climate change and the economic opportunity it represents, and that is why they called for a more cautious transition of energy policy away from oil and gas.
Aramco, Exxon Mobil and Chevron blamed demand for renewables and lack of investment in fossil fuels for recent fuel shortages and price volatility, according to executives at the World Petroleum Congress in Houston on Monday.
The conference was marked by the withdrawal of top energy ministers over travel restrictions and concerns over the coronaviruses. The verbal skirmish occurred at a time when oil demand recovered sharply from a collapse during the coronaviruses epidemic, even as world governments stressed the urgency of addressing climate change.
Equinor ASA Chief Executive Anders Opedal said that the risks we face in an imbalanced transition are illustrated by the volatility in commodity prices and the impact on business and people. U.S. deputy energy secretary David Turk pushed back against the industry position, saying climate can't be put on the back burner.
There is no alternative to stepping up and fixing the threat to climate change, he said to an audience in a largely empty hall.
The producers in Asia and Europe have been dealing with shortages of natural gas, coal and power due to production declines that have pushed prices to multi-year highs. In the United States, the Biden administration has criticized oil and gas companies, saying they put profits over consumers.
The tension between investing in oil and gas, carbon reduction technologies and responding to investors demanding higher returns will be a constant issue for major oil firms, executives said.
Liz Schwarze, Vice President of Global Exploration at Chevron, said the future of energy is lower due to less carbon from exploration discoveries and production.
Amin Nasser, CEO of Saudi Aramco, said there were too many wrong assumptions about the pace at which consumers will shift to renewables from oil and gas.
People assume that the right transition strategy is in place. Nasser said it was not. There isn't enough attention given to energy security, economic development and affordability.