As Clean Energy Grows, Decline in Oil Production Investments Could Lead to Severe Oil and Gas Shortages, Warns CEO of Russian Oil Company Rosneft

While Clean Energy Grows Worldwide, The Decline In Investments In Oil And Gas Production May Cause A Severe Global Shortage

Igor Sechin, CEO of the Russian oil company Rosneft, the second largest oil producer in the world, warned this Saturday at the St. Petersburg International Economic Forum that the world may face a severe shortage of the product due to the “fascination” of Western countries with clean energy. The main reason would be the underinvestment in the oil and gas sector around the globe.

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The CEO of Rosneft warned that while countries invest in clean energy, the demand for oil and gas continues to grow worldwide. This imbalance could cause a significant shortage of oil and gas in the coming years.

The CEO also stated that it is difficult to predict when the global economy will recover from the pandemic, but predicted that a complete recovery will occur in 12-24 months, when about 70% of the global population should already be vaccinated. Sechin analyzed that “we will certainly see new players emerging, as well as the growth of medium-sized companies and the consolidation of the sector as a whole in the near future.”

With the increase in global investment in clean energy, he said, sponsored by the West, it is certain that the world will soon see a shortage of oil and gas: “Oil and gas reserves have been declining in recent years, and a certain resource deficit is already evident. This trend may become a ‘new norm’ for large global companies and lead to the depletion of the resource base. The world is facing the risk of a serious shortage of oil and gas,” he said.

Last month, a Dutch court ordered Shell to reduce its greenhouse gas emissions. With this new pressure, Sechin emphasized that court actions are yet another risk factor for the oil market.

The Oil And Gas Sector Is One Of The Engines Of The Russian Economy

Russia is heavily dependent on oil and gas sales to the world; however, the country has committed to cutting carbon emissions. Even with this promise, Russia still lags behind several countries in the development of renewable energy, such as solar and wind energy. 

Igor Sechin’s Rosneft is the second largest oil producer in the world, behind only Saudi Aramco. The Russian company produces an astonishing 4 million barrels of oil per year.