OPEC Secretary-General: World Entering 'Era of All Energy Sources', Not Just Electricity

OPEC Secretary General Haitham Al-Ghaiss affirmed that the world will require greater quantities of electricity in the coming decades, but it will also need more of other energy sources, stressing that the future of energy does not 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 UN Framework Convention on Climate Change (COP31), Al-Ghaiss noted that discussions today increasingly speak of the world entering the “electric age.” However, this view does not reflect the full picture of transformations in the energy sector, as the future should be based on the concept of the “age of all energy sources,” with an awareness of the importance of integration and interconnection among various sources.

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

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

He noted that the expanded use of electricity will also lead to what can be described as the “age of more cables and chargers,” as 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 necessary for electric vehicles.

Al-Ghaiss explained that the second point is that the expansion of electrification will increase demand for oil-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, noting 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 have not received significant attention in the special report issued by the International Energy Agency (IEA) on electrification ahead of COP31.

He added that the expansion of electric vehicles faces other challenges that must be taken into account, 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-Ghaiss clarified that the third point concerns the fundamental role played by oil and its derivatives in manufacturing, maintaining, and installing electricity networks, a fact that OPEC has repeatedly emphasized. He explained that these products are used in the production of cables, overhead power transmission lines, towers, transformers, substations, and control systems.

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The expansion in the use of high-voltage submarine power cables will, in turn, lead to a significant increase in demand for specialized types of plastics and polymers. He noted that the fourth point concerns the importance of oil-derived products in electricity generation, regardless of the energy source, explaining that oil-based 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 crystalline silicon solar panels, emphasizing that petroleum 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 data 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 function in isolation from one another. Rather, the world will need all energy sources to meet growing global demand, address energy poverty that continues to affect billions of people worldwide, and enhance supply security. Al-Ghaith concluded by underscoring the importance of moving beyond traditional classifications that divide energy development stages according to sources, and instead recognizing the interdependence and mutual reliance among them, acknowledging that the world is already living in an “era of all energy sources.”

The 31st Conference of the Parties (COP31) to the United Nations Framework Convention on Climate Change (UNFCCC) kicked off yesterday in Antalya, Turkey, with the participation of national leaders, government officials, representatives of international organizations, and stakeholders from energy and environmental institutions, to discuss ways to strengthen international cooperation and accelerate the implementation of climate commitments. The conference, which runs until November 20, aims to address key climate-related challenges, foremost among them reducing carbon emissions, adapting to climate 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 rising demand and ensuring supply security.