OPEC Secretary General: World entering era of all energy sources, not just electricity

OPEC Secretary-General Haitham Al-Ghaiss confirmed that the world will require greater quantities of electricity in the coming decades, but will also need more of other energy sources, emphasizing that the future of energy cannot rely on focusing on a single source while neglecting the roles played by others.

Speaking to the Kuwait News Agency (KUNA) on Tuesday on the occasion of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31), Al-Ghaiss noted that discussions about the world entering an “electric age” are increasing, but this view does not reflect the full picture of energy sector transformations. He stressed that the future should be based on the concept of an “age of all energy sources,” recognizing the importance of integration and interconnection among various sources.

He clarified that there are four key points that reveal shortcomings in the ongoing discourse on the shift toward electricity. The first is that expanding electrification across various sectors is tied to a physical reality involving the need for more equipment, devices, and infrastructure. The so-called electric age requires adding a vast physical infrastructure in homes, offices, cars, and cities.

He added that producing and transporting these equipment relies on international supply chains, where materials and products travel through multiple journeys, often crossing different regions of the world before reaching final assembly lines. He pointed out that these transportation and logistics operations heavily depend on petroleum-fuel-powered transport means.

He noted that expanding electricity use will also lead to what can be described as an “age of more cables and chargers.” Every electronic device requires a power supply unit and at least one cable, while other devices require two or three. This means an increase in the number of chargers, low-voltage power sources, and cables, as well as heavy-duty cables and fixed internal electrical connections needed for electric vehicles.

Al-Ghaiss explained that the second point is that expanding electrification will increase demand for petroleum-derived products, given that devices and technologies associated with this transition rely on large quantities of plastic materials, whether in cable insulation, manufacturing charger casings and power units containing electrical transformers, or packaging materials often made of plastic.

He highlighted that some electric technologies require plastic components far exceeding those needed by the traditional systems they replace. He clarified that a medium-sized electric vehicle may contain 45 percent more plastic and polymer composite materials compared to a similar gasoline or diesel-powered car.

He emphasized that petrochemical requirements associated with the shift toward electricity are often overlooked, noting that they received little attention in the special report issued by the International Energy Agency on electrification ahead of COP31.

He added that the expansion of electric vehicles faces other challenges that must be considered, including the availability of critical minerals, the capacity of public charging networks and stations, government support, as well as market realities and their impacts on manufacturers and consumers.

Al-Ghaith clarified that the third point concerns the fundamental role played by oil and its derivatives in the manufacturing, maintenance, and installation of electricity networks, a fact that OPEC has repeatedly emphasized. He noted that these products are used in the production of cables, overhead power transmission lines, towers, transformers, substations, and control systems.

He pointed out that the expanded use of high-voltage offshore power cables will, in turn, lead to a significant increase in demand for specialized types of plastics and polymers.

He mentioned that the fourth point highlights the importance of oil-derived products in electricity generation, regardless of the source. He explained that oil-derived materials such as fiberglass, resins, and plastics account for an average of about 15 percent of the weight of wind turbines.

Al-Ghaith added that plastics make up approximately 10 percent of the components of traditional silicon-based solar panels, emphasizing that oil products are fundamentally involved in various stages of the value chains related to the manufacturing, construction, and transmission of renewable energy technologies.

He stressed that these facts confirm that energy sources do not operate on a zero-sum equation, where the growth of one necessarily leads to the decline of another. Nor do they operate in isolation; rather, the world will need all energy sources to meet global demand growth, address energy poverty that continues to affect billions of people worldwide, and enhance supply security.

Al-Ghaith concluded by stressing the importance of moving beyond traditional classifications that divide energy development stages according to their sources, and instead recognizing the interconnection and mutual dependence among them, and acknowledging that the world is already living in the “era of all energy sources.”

The 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31) kicked off yesterday, Monday, in the Turkish city of Antalya, with the participation of national leaders, government officials, representatives of international organizations, and stakeholders from energy and environmental institutions, to discuss ways to enhance international cooperation and accelerate the implementation of climate commitments.

The conference, which runs until November 20, aims to discuss the most prominent challenges related to climate change, foremost among them reducing carbon emissions, adapting to their impacts, financing climate projects, and enhancing investments in clean energy and low-emission technologies, alongside examining the future of the global energy mix and the role of various energy sources in meeting growing demand and ensuring supply security.