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Rosneft head Igor Sechin stated that the energy transition is unrealistic – Rossiyskaya Gazeta

Date: July 12, 2024 Time: 15:48:34

The “green” transition is not supported by profitable energy sources and its implementation is an illusion, said Igor Sechin, CEO of Rosneft PJSC, at the “Energy Panel” within the framework of the XXVII International Economic Congress in St. Petersburg. Forum.

The head of Rosneft gave the keynote speech “Energy transition and ghost barrels: Give up hope, everyone who enters here, not everyone will be included in the bright future of world energy!”

Financial costs of the energy transition

Although around $10 trillion has been invested in the energy transition worldwide over the past two decades, alternative energy sources have not been able to displace hydrocarbon fuels, the head of Rosneft said. Today, wind and solar power account for less than five percent of global energy production, and electric vehicles account for only about three percent.

During the same period, the consumption of oil, gas and coal increased by a total of 35 percent, and their total share in the global energy balance did not change. Additionally, oil and coal consumption, as well as gas use in power generation, reached new record levels in 2023.

“The green transition is not supported by profitable sources and its implementation is an illusion, which leads to the withdrawal of investments in traditional energies, that is, there will be neither one nor the other,” warned the director of Rosneft.

At the same time, the energy transition itself is clearly underfunded. Thus, by 2030, to achieve the goals of the Paris Agreement, global spending on the fight against climate change must increase to about nine trillion dollars a year, five times more than what was spent in 2023. This figure is equivalent to almost 10 percent of global GDP and more than three times the world’s annual energy investment. It is also equal to the combined GDP of France, Great Britain and Italy. In total, more than $270 trillion will be needed to achieve the goals of the Paris Agreement by 2050.

It is also important that the climate agenda requires the creation of a new type of infrastructure, as has happened many times before. In the 19th century, growing coal production required huge investments in mines, canals and railways; wells, pipelines and refineries were necessary for the development of the oil industry in the 20th century; and generating electricity required the construction of power plants and the development of a complex system of energy transmission networks.

Who benefits from green energy?

The idea of ​​​​the energy transition is to strengthen the unipolar structure of the world order, the head of Rosneft believes, and “the concept of energy transition is based on discrimination around the world”, where partners can sacrifice each other’s interests in whenever. “Friendship is friendship, but tobacco is something apart,” Igor Sechin quoted a Russian proverb.

“This became especially evident during the implementation of the project to “save” Europe from its imaginary dependence on Russian energy resources. In essence, by sacrificing its energy security, the European Union also abandoned its sovereignty,” said Igor Sechin.

The Rosneft CEO cited data according to which, after reducing Russian energy purchases, the European Union spent more than $630 billion on gas imports from other countries from 2021 to 2023. This is comparable to the total spending on gas from Europe over the previous eight years. European investments in green energy during the same period are close to this amount. The figure is also comparable to the GDP of Sweden and Poland, and almost four times the total GDP of the Baltic countries.

Rising gas costs, according to the head of Rosneft, are “eating” the margins of energy-intensive industries such as the production of steel, fertilizers, chemicals, ceramics and glass. As a result, manufacturing activity in the eurozone has been declining since mid-2022, with 32 percent of German companies already planning to move their production capacity abroad.

How the energy transition affects the income of Europeans

For the first time in many decades, Europe faced a new reality. Despite government subsidies, European households are reducing gas consumption at an unprecedented rate from 2021 to 2023.

“As a result of the price shock, gas demand in Europe’s residential and commercial sectors has fallen by more than 20 percent in the last two years and has continued to fall this year, for the first time in many years. For decades, Europe is facing a new reality: Europeans have become poorer,” said the head of Rosneft.

Rising gas costs have also impacted profits in energy-intensive industries, including steel, fertilizers, chemicals, ceramics and glass. “As a result, productive activity in the eurozone has been declining since mid-2022,” said Igor Sechin.

Basically, Europe achieves its emissions reduction targets by directly reducing energy consumption and slowing economic growth. “The continuation of this policy could end up destroying European industry. As you know, lower energy consumption is in the graveyard,” added the director of Rosneft.

According to him, Europe lags behind the United States in economic growth and in terms of average per capita income. According to the IMF, over the past 15 years the EU economy has grown only 13 percent, compared to 85 percent in the United States. At the same time, the average per capita income of EU countries has fallen compared to most North American states and is now 52 percent lower than the US average, Sechin said. If this trend continues, then by 2035 the gap in GDP per capita between the United States and the EU will increase fivefold, that is, the same as today between Japan and Ecuador, said Igor Sechin.

The “Green Agenda” as a declaration of energy war against the population of the Earth

Overcoming the inequality of the planet’s inhabitants is impossible without a reliable supply of oil and gas, said Igor Sechin. In his opinion, in the future the demand for electricity will grow because developing countries have not yet overcome energy poverty. Thus, today more than two of the eight billion inhabitants of the Earth still use open fires for their domestic needs, and more than 700 million people live without access to electricity.

“The gap in energy consumption between poor and rich countries is striking. For example, per capita consumption in India, where about 20 percent of the world’s population lives, is eleven times lower than in the United States as a whole. In the so-called G7, where less than 10 percent of the world’s population lives, per capita energy consumption is almost three times higher than the world average,” said Igor Sechin.

He recalled that it is in the developing countries of Asia and Africa where the greatest population growth is observed and, as a result, a rapid increase in the need for energy resources. It is obvious that in this situation, a reduction in global consumption of fossil resources would automatically mean not only the preservation, but also the aggravation of the problem of hunger and energy poverty.

“Therefore, aggressively promoting the green agenda means actually declaring energy war on the majority of the world’s population,” the Rosneft director noted.

Those who advocate a complete ban on fossil fuels, or even a phase-out, fail to take into account the role of oil in the modern world. In fact, in addition to oil products, a large number of everyday goods are produced with oil, without which the life of a modern person can no longer be imagined.

“Giving up oil will also mean abandoning the modern way of life and, conversely, for many countries, greater oil consumption means access to the benefits of civilization,” said Igor Sechin.

What scientific research says

Igor Sechin recalled the research carried out in 1976 by the then future Nobel Prize winner in Physics, academician Piotr Kapitsa. Based on basic physical principles, the scientist predicted the possibility of a global energy crisis due to the insufficient efficiency of all types of alternative energies.

“As Kapitsa stated, the key characteristic of any type of energy is the density of its energy flow. According to this indicator, such types of fossil fuels as oil (provides 195 W/m2) and gas (482 W/m2) are far ahead of solar energy (6.6 W/m2) and wind energy (1.8 W/m2), which, among other disadvantages, have an uneven or, to put it more scientifically, stochastic nature of energy generation”, said Igor Sechin.

From currently known research, the most promising type of “clean” fuel is hydrogen. “However, there is still no commercially viable production technology, logistics, or even sales markets. We must also take into account the still low efficiency, because in the production of hydrogen energy is consumed in electrolysis. It turns out to be greater than the amount of energy obtained in production, so alternative energy sources cannot yet guarantee either the reliability of the supply or its optimal technical and economic characteristics,” said Igor Sechin.

At the same time, the very statement about the relationship between emissions and climate change requires an objective assessment, without which statements about the priority of the anthropogenic factor in climate change have no basis.

The Earth’s climatic cycles develop in accordance with objective laws inherent in any cosmic body, which are influenced by basic factors such as the state of the atmosphere, the activity of the Sun, the distance of the Earth’s orbit from it, the angle tilt and position. of other planets in relation to ours, and many others.

At the same time, climate change occurs, among other things, as a result of fundamental natural phenomena. A striking example is “supervolcanoes, during whose eruption the volume of lava and ash emissions exceeds 1,000 cubic kilometers.” These cataclysms can radically change landscapes and cause strong cold waves, the so-called “volcanic winters.” As a result of the eruption of the Toba supervolcano in Indonesia 74 thousand years ago, a decrease in global temperature from 3.5 to 9 degrees Celsius occurred as a result of the release of more than two billion tons of sulfur dioxide into the atmosphere. atmosphere. Eruptions of comparable magnitude occurred. three times in the Yellowstone province of the United States, and the last known supervolcanic eruption, Taupo, occurred in New Zealand about 25 thousand years ago.

“According to several renowned scientists, for example Nobel Laureate in Physics John Clauser, the main cause of this climate change is the planet’s natural self-regulation mechanisms, and not the “human factor,” said Igor Sechin.

Over the past 600 million years, atmospheric carbon dioxide levels and air temperatures have fluctuated continuously without the influence of fossil fuels or human activity. Modern scientists, after analyzing temperature information for ten thousand years, have come to the conclusion that nine periods of warming have already occurred since the end of the last ice age. During seven of them, the temperature on Earth was higher than today.

“The defenders of the theory of the anthropogenic factor present the energy transition to us as an illusion of saving the world. Now that we have already accumulated some experience in the implementation of the energy transition, it is clear that neither its goal nor, consequently, its preparation. because it has been developed in accordance with the tasks and needs of humanity, such as infrastructure, financing, the supply of raw materials and the availability of appropriate technologies,” Igor Sechin summarized.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

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