DEPARTMENTS • OIL & GAS MARKETS
Report: American LNG can support
Europe’s long-term energy security
Sultan Ahmed Al Jaber, Group CEO of ADNOC, urged governments
not to discard the old energy system before a new one is built.
ADNOC Group CEO Al Jaber: All progress
starts and ends with energy security
Energy security is essential for social, economic and climate
progress, and the responsibility of the energy industry in main-
taining energy security has never been clearer, according to
Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced
Technology and Managing Director and Group CEO of Abu Dhabi
National Oil Company (ADNOC).
Speaking at the Energy Intelligence Forum in London in early
October, he said market sentiment does not reflect the real under-
lying fundamentals, tight spare capacity and long-term demand
growth. Therefore, policies aimed at pulling the plug on the cur-
rent energy system, before we have built the new one, are mis-
guided. He added that, for economic progress to be maintained,
substantial investment is required in hydrocarbons, the energy
source the world will rely on well into the future.
“We have seen that all progress starts and ends with energy
security. And, as the world’s energy leaders, our responsibility in
maintaining that energy security has never been more evident,”
he said. “Yes, we must all commit to mitigating the impact of
global energy supplies, but let’s keep our focus on capturing car-
bon, not canceling production. ”
Dr Al Jaber went on to explain that partnership with the energy
sector is critical to the energy transition as it represents the most
complex and capital-intensive project in human history . No one
has more experience in delivering these kinds of projects than the
energy industry, he added.
New analysis from API and the International Association
of Oil and Gas Producers highlight s the potential for US LNG
to strengthen Europe ’s energy security. The study shows that
abundant and affordable natural gas will make it possible to
substitute Russian imports before 2030 . Findings include:
■ LNG will meet approximately 50% of Europe’s natural gas
demand through 2030. After 2030, LNG will meet an even
greater share, reaching about 75% of demand by 2040.
■ Growth in European LNG demand will be more than double
the 50 billion cu m/day specified in the March agreement
between the US and the EU. While US LNG is already flowing
to Europe at record levels, significantly more will be required
to fully rebalance European gas markets.
■ To meet shared energy security commitments , the US will
need to expand its LNG export capacity and the EU will need to
expand its import capacity over the next several years.
■ Long-term LNG purchases and infrastructure contracts are
crucial to ensuring a stable supply of energy and should be
supported by an appropriate European legal framework.
DNV outlook report: Europe likely to double
down on renewables amid energy crisis
The rising cost of energy is reinforcing the difference in
decarbonization speed between Europe and the rest of the
world, according to DNV’s new Energy Transition Outlook .
Europe will double down on renewables and energy efficiency
to increase its energy independence. Additionally, Europe’s
gas consumption will fall dramatically as a result of the war
in Ukraine .
In lower-income countries, however, cost remains the main
driver of energy policy. In those regions, high energy and
food prices are reversing the coal-to-gas switch and putting a
dampener on decarbonization investments. For example, the
share of gas in India’s energy mix will fall from 11% to 7% in the
next five years, while the share of coal will increase.
However, the impact of the current crisis on the overall
energy transition is outweighed by the plunging costs of
renewables and increased carbon costs in the longer term.
The short-term increase of coal consumption will not prevent
it from rapidly exiting the energy mix, with its peak in 2014.
OEUK survey of students shows 54% would consider starting career in energy industry
In a survey of 1,000 secondary school
pupils (ages 11-18) and 1,000 university stu-
dents in the UK, more than half (54%) said
they are open to working in the energy
sector .
The study, commissioned by Offshore
Energies UK (OEUK), aimed to discover
what young people today want out of their
future careers. It found that 29% are seek-
ing a job that has a positive impact on
10 society and 21% want to positively impact
the environment.
When looking at how they view the oil
and gas sector, the most popular opinion
(31%) was that the industry is better than it
used to be in terms of addressing climate
issues. Over a fifth (22%) acknowledged
that we still need oil and gas and believed
the industry has a role to play in develop-
ing lower-carbon technologies.
The survey also showed that when con-
sidering next steps, the events of the last
few years have influenced their career
interests . Over a quarter (28%) said the
cost-of-living crisis has caused them to
rethink their future careers. A total of 15%
said the pandemic has caused them to
change course, and 13% said the climate
crisis has had an impact on what they
want to do with their professional lives.
NOVEMBER/DECEMBER 2022 • DRILLING CONTRACTOR