Warning of 'Nightmare scenario' if fossil fuels dumped too quickly
February 1st 2009 The Saudi oil minister and the Secretary General of OPEC have warned that inadequate investment in new oil capacity could lead to a global energy crisis if renewables fail to deliver on time, according to reports in the New York Times.
We could face a "nightmare scenario" Ali al-Naimi, the Saudi oil minister told delegates at an oil industry conference in Houston "if alternative energy supplies fail to meet overly optimistic expectations, while traditional energy suppliers scale back investment due to expectations of declining demand for their products.”
“While the push for alternatives is important,we must also be mindful that efforts to rapidly promote alternatives could have a chilling effect on investment in the oil sector.”
Al Naimi stressed that until it is clear which new technologies will be successful and exactly how long this will take, an "inclusive" energy policy is needed.
Meanwhile, speaking at an industry event in London OPEC Secretary General, HE Abdalla Salem El-Badri urged, "proposed fiscal and environmental policies aimed at favouring the development of alternative sources of energy will discourage companies from investing in crude oil now.
"There is the long-term risk that if alternative energy sources fail to meet set quantitative targets, crude capacity by then might be insufficient to make up any resulting supply shortfall."
El-Badri was keen to emphasise that OPEC is not against diversity in the global energy mix, but he urged "policymakers need to recognise that by pushing too hard for alternative energies as oil substitutes — rather than as complements — they are adding to uncertainty about future demand."
El-Badri called for "better predictability" in energy policies to help the oil industry prepare for the future. More articles from WEE News Desk: | 
