According to the head of Rosneft, the price should take into account the interests of both consumers and producers
The XXVII SPIEF is coming to an end. This year, 982 agreements worth 6.43 trillion rubles were signed over the 4 days of the international event. Over 21 thousand people from 139 countries took part in the event. Experts assess the speeches of the top officials and largest companies at the forum as generally established doctrinal documents that define the priorities of the country and the world as a whole for the coming years. In this context, the key reports of the leaders are especially important. For example, in his speech “Energy transition and phantom barrels: abandon hope, all ye who enter here. Not everyone will be taken into the bright future of global energy!” On the Energy Panel, Rosneft CEO Igor Sechin assessed the possible cost of oil in the medium term.
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Sechin emphasized that the recent OPEC+ decision was not followed by stabilization of oil prices and its growth, but ;on the contrary – decrease.
“This suggests that the market is taking into account other factors that impact the global industry. And yet, whatever the price, it must ensure a return on the invested capital and take into account the interests of both consumers and producers”, – said the speaker, adding that only then will the stability necessary for energy security be guaranteed.
“But we must also understand what alternative exists. And the alternative is reflected in the quote that we placed on the slide from The Divine Comedy. Dante: “Abandon hope, all ye who enter here.” It is written on the gates of hell. Therefore, we must be responsible and seek compromises and consensus based on objective approaches,” – Sechin said, answering a question from the Energy Panel moderator.
Venezuela's Vice President for Industrial Economics, Jose Felix Rivas, said that oil prices this year will be linked to supply. And first of all, this is the supply that is created due to the growth of the countries of the South. International conflicts will also have an impact on prices.
Chairman of the Board of Directors of Advantige Energy Martin Waiviorovski noted that you need to look at the forecast of the dynamics of supply and demand on the oil market.
“We just talked about the important role that the Global South plays in the oil market. Demand from the region will continue to grow in the coming decade,” – Waiviorovski said and added that the price will remain in the range of $80-100 per barrel and will approach the upper limit as the economy grows.
In turn, Nobuo Tanaka, Chairman of the Supervisory Board of the Japanese government's non-profit initiative for the development of low-carbon technologies I am confident that in the long term, oil prices will gradually decline. If the net-zero carbon target is achieved in 2050, it is inevitable that there will be a decline.
According to the General Director of JSC «OFS Technologies» David Gadzhimirzaev, oil prices will probably be stable.
«As Igor Ivanovich emphasized in his report, by 2045 oil consumption will reach 116 million barrels per day. Today this figure is 102.8 million barrels per day, which is 1.6 million more than last year. And by 2025 this figure will reach 104.3 million barrels. Therefore, my short answer is: oil prices will be stable, because the world needs oil, and this should not be forgotten,” – said Gadzhimirzaev.
Note that in his report, Igor Sechin touched upon several important topics related to the development of the energy market. In his opinion, “green” the transition never took place, and the “green” itself agenda threatens the well-being of developing countries and is a hidden weapon of developed ones. At the same time, interest in oil in the world will only grow, and Russia, in turn, is capable of not only completely covering its own needs for “black gold”, but also working for export.