VIENNA (Pakistan Point News / Sputnik - 07th July, 2023) The public may equate climate progress and the transition to cleaner energy with higher costs and volatility if global energy investment does not increase, International Energy Forum (IEF) Secretary General Joseph McMonigle told Sputnik.
Earlier in the year, the IEF released the Upstream Oil and Gas Investment Outlook, which said that annual upstream investment would need to increase from $499 billion in 2022 to $640 billion in 2030 to ensure reliable energy supplies and meet market needs. The increase in investment has become necessary primarily because of rising energy costs, according to the IEF.
"What it means (is that) high prices and volatility are becoming a new normal, and I've made the point here several times in another form. I think that's bad for the transition and climate progress, because the public starts to equate higher prices and volatility with the energy transition or the climate process will lose public support. So, ultimately it's negative for progress on climate change," McMonigle told Sputnik on the sidelines of the OPEC International Seminar in Vienna, when asked what the consequences would be if the $640 billion investment target was not met.
At the same time, renewable energy remains quite expensive despite recent efforts to reduce production costs, the IEF chief added.
"They (renewables) have been getting cheaper. The manufacturing is getting cheaper, but the actual production is still pretty expensive compared to other sources," McMonigle said.
He also noted that the current target for annual upstream investment could be revised once again due to the Ukraine conflict.
