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El-Molla: America is offering an alternative to Russian gas in Europe |
El-Molla: America is trying to offer an alternative to Russian gas in Europe.
Amid a global landscape where economic challenges intersect with geopolitical factors, ADIPEC 2025 in Abu Dhabi continues to highlight the future of energy markets in light of the green transition and new Western sanctions on Russia.
ADIPEC 2025 in Abu Dhabi reaffirmed its position as the largest global platform bringing together decision-makers and industry experts to discuss the future of energy and explore investment opportunities amidst the sector's rapid transformations. In this context, former Egyptian Minister of Petroleum and Mineral Resources, Tarek El-Molla, revealed his vision for balancing supply and demand in the oil market following US sanctions on Rosneft and Lukoil, which produce approximately 5 million barrels per day, in an exclusive interview.
Energy is the lifeblood of the global economy.
He noted that prices are currently stabilizing near $68 per barrel of Brent crude, predicting that global demand will continue to grow by 1% during 2025 and 2026. The United States, the Middle East, and the Eastern Mediterranean stand out as key hubs for future gas supplies, with global energy investments exceeding $3.3 trillion this year. Mulla emphasized that the next phase requires a delicate balance between security of supply and sustainable transformation, while leveraging artificial intelligence to enhance efficiency and reduce emissions in the energy sector.
Oil is a vital lifeline.
Recent global estimates reveal that "energy is the lifeblood of the global economy," and that the energy system requires massive and unprecedented investments to meet the ever-increasing global demand.
Projections indicate that:
* According to the latest international estimates, the world needs $275 trillion by 2050 to meet the growing demand for energy and achieve the goals of the green transition.
* Current investments in the energy sector are projected to reach approximately $3 trillion by 2025, with $1.1 trillion allocated to oil and gas projects.
* International agencies predict that global energy demand will increase by 50 percent by 2050, driven by population growth, industrial expansion, and technological advancements.
* The equation of "energy security versus green transition" is the most significant challenge facing markets in the coming period.
* Recent US sanctions on the Russian oil companies Rosneft and Lukoil add further pressure to the market, amidst the ongoing Russian-Ukrainian conflict and the growing competition among major powers for energy influence.
Mulla emphasized that the next phase requires a delicate balance between security of supply and sustainable transition, while leveraging artificial intelligence to enhance efficiency and reduce emissions in the energy sector.
OPEC+ Between Caution and Patience
The former Egyptian minister also addressed the OPEC+ alliance's decision to increase production by 137,000 barrels per day while maintaining its production policy for three months. He explained that the decision "reflects a well-considered approach that balances supporting price stability with preserving the attractiveness of investment in the sector."
Mulla emphasized that "the alliance does not want to repeat past mistakes when excessive supply increases led to price collapses and harmed the national budgets of producing countries." He noted that "a slight increase followed by a monitoring period is a realistic option that allows for assessing market reactions before taking any broader steps."
He added that "current fluctuations are not measured solely by supply and demand factors, but are also affected by financial and geopolitical factors, including exchange rate and interest rate volatility, the state of emerging markets, and developments in the energy transition." He stressed that "the next phase requires major producers to adopt a flexible policy that ensures revenue sustainability without harming investment in conventional energy."
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