Igor Sechin, Chief Executive Officer of Rosneft, Russia’s biggest oil producer, addressed key global business and political leaders at the Energy Panel of the 27th St. Petersburg International Economic Forum (SPIEF).
According to a statement by the company, Igor Sechin provided a comprehensive analysis of the current state of the energy market and highlighted key challenges facing the industry.
During the speech, Igor Sechin laid special emphasis on the rapidly growing Indian economy and said “Over the next five years, India is projected to continue its strong economic momentum and become one of the top three largest economies in the world with a GDP of USD 5 trillion, and by 2050 will overtake the U.S. in terms of the size of the economy.” He further added that India's end-use energy consumption is set to grow by 90% by 2050 - one of the fastest growth rates in the world.
Rosneft recently signed a term agreement with Indian Oil Company to increase oil supplies and diversify India’s oil grades. The Agreement took place during Igor Sechin’s recent visit to India. Indian companies (ONGC Videsh Ltd., Oil India Limited, Indian Oil Corporation, and Bharat Petroresources) have been owners of 49.9% of Rosneft’s subsidiary JSC Vankorneft since 2016.
Furthermore, Igor Sechin highlighted that while renewable energy accounts for less than 5% of global energy production and electric vehicles only make up approximately 3%, consumption of oil, gas, and coal has continued to rise. He argues that the lack of profitability in green energy initiatives is leading to divestment from the traditional energy sector, exacerbating the challenge of transitioning to sustainable energy sources.
Igor Sechin underlined that the energy transition should be well-balanced and focused on addressing the interests of the majority that will ensure the growth of energy consumption in the coming years, i.e. developing countries. He also noted that to achieve energy security, it is necessary to ensure the sufficiency, affordability and reliability of energy sources.
Aggressive promotion of the "green agenda" actually means declaring an energy war on the majority of the world's population, and overcoming energy inequality is impossible without reliable supplies of oil and gas, said Rosneft CEO Igor Sechin.
According to Rosneft CEO, developing countries will be the main drivers of oil consumption in the coming decades. By 2030, demand growth in this group of countries is expected to account for 95% of global consumption growth in aggregate. The highest growth in oil demand is expected in Asian countries, which are Russia's main trading partners.
India's economy has made significant strides in recent years. Since 2010 energy demand has grown by 45%, making the country the third largest energy consumer in the world. Over the next five years, India is projected to continue its strong economic momentum and become one of the top three largest economies in the world with a GDP of USD 5 trillion, and by 2050 will overtake the U.S. in terms of the size of the economy. India's end-use energy consumption is set to grow by 90% by 2050 - one of the fastest growth rates in the world.
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