Leading experts and representatives of major energy businesses presented their views on the current state of the energy market at the Energy Panel as part of the 27th St. Petersburg International Economic Forum,

The event, organized with the support of Rosneft, featured speeches by Zhang Daowei, Vice President of China National Petroleum Corporation (CNPC), Jose Felix Rivas, Venezuela's Sectoral Vice President of Economy, Martin Wiewiorowski, Chairman of the Board of Directors of Advantage Energy, Nobuo Tanaka, Chairman of the Supervisory Board of the Japanese government's non-profit initiative for the development of low-carbon technologies, and David Gadzhimirzaev, General Director of AO Technologies OFS. The session was moderated by Alexander Dynkin, Academician of the Russian Academy of Sciences and President of the Institute of World Economy and International Relations of the Russian Academy of Sciences.

Zhang Daowei, Vice President of CNPC, noted in his speech that today there is an acceleration of processes unprecedented before in the world, which have brought a number of changes in the world geopolitics and world economic activities.

"Following the new round of scientific and technological revolution, the energy market has undergone a radical restructuring and transformation of its structure," Daowei said. According to him, the share of fossil fuel sources in primary consumption is at 80%.  CNPC Vice President expressed confidence that with the energy transition and within the framework of scientific and technological progress, the world's growing energy needs can be generally met.

Zhang Daowei agreed with the conclusions of Igor Sechin's report at the Energy Panel. "We believe that as part of the overall movement towards energy transition, the right response to such challenges is to commit to our joint concerted development of conventional and new energy, respecting the characteristics and capabilities of our countries," CNPC senior executive said. Oil and gas will long remain a solid foundation for a number of states to build up their competitive capabilities, as well as for the key area of energy security, Zhang Daowei emphasized. 

Jose Felix Rivas, Venezuela's Sectoral Vice President of Economy, said in his speech that globalization as it appeared in the 1990s and the ideology of free trade have failed. "We see that sanctions are a new form of limiting the productive capacity needed for countries to develop," he said.

Jose Felix Rivas also expressed the view that the construction of green neocolonialism is being realized under the pretext of the green energy transition. "As for the green economy or this green extremism here - the only thing green there is the green dollar. It's a form of maintaining its dominance and its hegemony," Venezuela's Vice President said confidently. "To counter this dangerous propaganda that is harmful to our potential, we must act together," Jose Felix Rivas said.

Martin Wiewiorowski, Chairman of the Board of Directors of Advantage Energy, who has more than 40 years of experience in the oil and gas industry, including in Russia, in turn agreed with the thesis from the speech of the head of Rosneft about the lack of investment in new projects in the global oil and gas industry.

"We observe that it is the sector of oil, gas and traditional energy sources that is experiencing a severe shortage of investment," Wiewiorowski noted.

All of this comes at a time when global demand for oil continues to grow, the Chairman of the Board of Directors of Advantage Energy emphasized.

"Demand is determined primarily by increased consumption from the Global South. As a result of underinvestment in priority areas, as well as reduced exploration activity, we are seeing a decline in production. This is particularly true for non-OPEC countries," Wiewiorowski summarized.

According to David Gadzhimirzaev, General Director of АО Technologies AFS, the innovation potential of the Russian oil industry is high and despite sanctions restrictions and pressure from the West, the task of increasing the production of       high-tech equipment will be accomplished.

Gadzhimirzaev noted that cross-industry collaboration between oilfield service companies, metallurgical companies and electronics manufacturers is necessary for the development of the industry. "The country has all the resources for this - this is the most important thing. Therefore, I would like to emphasize that despite the sanctions restrictions, despite the pressure of the West, we will accomplish this task," said the head of Technologies OFS.

Nobuo Tanaka, Chairman of the Supervisory Board of the non-profit initiative of the Government of Japan for the development of low-carbon technologies, called for increased use of LNG and the development and active deployment of carbon capture and storage technologies, which are essential for the energy transition.

Nobuo Tanaka expressed confidence that Rosneft can make a significant input on the supply of energy resources to consumers and the development of capture and other technologies".

Information & Advertising Department
Rosneft
June 8, 2024