Sunday, August 3, 2025

The Truth Banishes Fear!

OPEC: The World Cannot Run on Renewable Energy and EVs

The New Diplomat
Writer

Ad

The Hidden Signals in Oil Markets

Asia’s oil demand is growing faster than major agencies forecast, led by India and Southeast Asia’s emerging economies. China is rapidly restructuring its supplier base, favoring Brazil while cutting ties with U.S. energy. Kazakhstan’s refining expansion and chronic overproduction raise major questions about its future in OPEC+. I’ve been following the oil market closely this…

Oil Falls Below $70 as Sentiment Sours

A poor U.S. jobs report led to a broader sell-off on Friday, with leading stock indices falling from record highs. Friday, August 1st, 2025 Buoyed by Trump’s Russia threats and news of Indian state refiners curbing purchases of Russian crude, crude oil futures have been trending above $70 per barrel throughout the week, settling on…

Ad

Proponents of critical minerals as the way to have a world running solely on renewables and electric vehicles are not providing the full picture as their assessments of necessary investments and the speed of the energy transition sound unrealistic, according to OPEC Secretary General Haitham Al Ghais.

Policymakers and forecasters, as well as advocates of a fast energy transition, need to carefully consider if the needed investments and volumes of critical minerals supply are feasible in their net-zero scenarios, Al Ghais wrote in an article published on OPEC’s website on Monday.

Mining projects to extract critical minerals have long lead times from discovery to first production.

“Moreover, critical mineral mining is also an extremely energy-intensive activity, and one that today runs on hydrocarbons. It could not function otherwise,” OPEC’s top official wrote.

Coal and natural gas are vital for the processing of raw critical minerals to refine them into battery-grade products ready to be used in clean energy and electric vehicles (EVs).

“Petroleum-based products are also used for excavators, bulldozers, dump trucks on site, as well as various forms of transportation to move minerals from supply to demand centres,” Al Ghais said.

Oil products and other fossil fuels are also used for the production of solar panels, wind turbines, and EVs.

“The oil industry, renewables and EVs are not separate from each other. They do not work in silos,” said the head of OPEC, which reiterated its position that oil and gas cannot be removed from the global energy system and simply replaced with EVs and solar and wind power plants.

“Is it realistic to think renewables can meet the expected electricity expansion alone, particularly given the world has invested over $9.5 trillion in ‘transitioning’ over the past two decades, yet wind and solar still only supply just under 4% of the world’s energy, and EVs have a total global penetration rate of between 2% and 3%,” Al Ghais wrote.

Last month, Al Ghais said that peak oil demand is not on the horizon, blasting the International Energy Agency’s prediction that global oil demand would peak before 2030.

NB: Tsvetana Paraskova wrote this article for Oilprice.com

Ad

X whatsapp