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No New Oil Project Shoud Be Developed, Urge Researchers :: Uganda Radionetwork

No New Oil Project Shoud Be Developed, Urge Researchers

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The call comes as world leaders and environmental activists prepare to travel for the UN Climate Change Conference(COP) to be held in Dubai at the end of this month.
23 Nov 2023 19:19
Workers at Tilenga project in Uganda. TotalEnegies has defended projects like the one being developed in the Albertine. Credit Wambi Michael

Audio 3

The world should put on hold any new oil and gas projects if the Net Zero ambitions. This is according to a team of experts from the International Energy Agency (IEA) who also urged that investments in oil and gas should be more than halved from now onward.  

Investment in the oil and gas sector is expected to reach 800 billion dollars before the end of the year. Christophe McGlade, the Head of the Energy Supply Unit and leads the energy supply and climate analysis for the World Energy Outlook series suggests that no new upstream projects should be developed if we are to avoid oversupply.   

///Cue In “The declines in demand..…. 

Cue Out ….end of a technical lifetime,”///  

The warning comes as Uganda plans to produce oil discovered in the Albertine. There are a number of oil explorations going on including areas like Karamoja among others. What could be the future of Uganda’s oil? Will it be commercially viable? Tim Gould, the Chief Energy Economist with the International Energy Agency said state oil companies need cut production too.

Gould who is also the Head of the Division for Energy Supply and Investment Outlooks at IEA called on countries with big national oil companies to deliver on their energy transition ambition by cutting on oil production. He explained that oil majors like Chevron Corp, BP PLC, TotalEnergies SE, Shell PLC, and Exxon Mobil Corp. among others contribute far less oil on the market compared to national oi companies around the world.  

/// Cue in “We might have different things…….   

Cue Out ….but also reservoirs.” /// 

“And there are elements of oil and gas that are not even represented here on the production side. Traders, refiners, and oil and gas service companies as well. This is an industry that produces more than half of global energy supply,” he said. 

The national oil companies are responsible for producing more than half of global greenhouse emissions. The IEA says more than half of global output and over half of global oil reserves belong to national oil companies that either have a domestic focus or an international focus. 

Gould flanked by the IEA Executive Director, Fatih Birol addressed an online media conference as the presented the agency report about oil and the energy transition. 

The IEA has been releasing such reports since 2021. Each of those reports has warned about increased oil production and their threat to the ambitions as set by the Paris Agreement in 2015. Fatih Birol sounded disappointed that countries seemed not to heed to calls.

///Cue in “It is a story of disappointment....

Cue Out……we have seen very little move”/// 

The report issued this week is the  starkest since it shocked the fossil fuel industry in 2021 by saying that there would be no room for new oil and gas exploration projects if climate targets were to be met.