- Saudi Arabia’s finance minister told reporters that if the world’s climate policies don’t pay attention, a “much larger” energy disaster might happen.
- “If we are not careful about what we are doing to achieve our goals, we may end up with a major energy crisis like the one we are seeing today, and it could get worse in the future,” Mohammed al-Jadaan warned.
- Gas prices have risen across Europe and around the world as a result of increased demand, limited supplies, and wind power generating constraints.
Possibility of even worse energy crisis
Saudi Arabia’s finance minister told reporters that if the world’s climate policies aren’t attentive, a “far bigger” energy catastrophe might occur.
“If we are not careful about what we are doing to accomplish our targets, we may end up with a very major energy crisis like the one we are seeing today, and it might grow even worse in the future,” Mohammed al-Jadaan said, adding that climate policies are “extremely vital.”
Increased demand, insufficient supplies, and a shortage of wind power generation have all contributed to a spike in gas prices across Europe and worldwide.
Promises are shown by Carbon Capture
Finance Minister al-Jadaan called for balance in an exclusive discussion with reporters on Wednesday, saying he wants to see breakthroughs in new technology for capturing, reusing, and recycling carbon alongside investment in renewable energy sources.
Carbon capture is a technique for capturing carbon dioxide from the atmosphere or as it is released, such as when fossil fuels are burned for energy. Though not everyone agrees, some regard it as a potential strategy to cut greenhouse gas emissions.
Oil price concerns
Both the Brent and US crude benchmarks have surged more than 65 percent this year and are near multi-year highs.
According to Al-Jadaan, the kingdom does not want oil prices to be excessively high or low.
“I don’t want a price that is too low,” he continued, “because that will stifle investment and lead to a catastrophic energy issue.” He went on to say that policies focusing on renewables had had “unintended consequences” in regions like Europe, which had contributed to the rise in gas costs.
He defined a “balanced” oil price as one that benefits producers by allowing them to continue investing in supply but not jeopardizing the global recovery from the “extremely terrible Covid-19 crisis.”
Concerns of Saudi Ministry of Finance
Energy price hikes, he said, should be closely monitored, and “people would need to rethink what we did to produce this supply constraint… and try to solve it.”
He did add, though, that the issues are unlikely to last long and might be rectified in one to two years.