By Emmanuella Anokam

The Organization of the Petroleum Exporting Countries (OPEC) has highlighted the need to verify the impact of environmental social governance (ESG) policies and requirements on investments in the oil and gas industry.

OPEC also stressed the need to be aware of how investments in the industry were being affected by the financial community’s climate disclosure campaign.

Dr. Mohammad Barkindo, Secretary General of OPEC, made this known in his opening speech on Thursday at an energy symposium in London.

The News Agency of Nigeria (NAN) reports that the event has been tagged “Quo Vadis? – Oil and gas in the 21st century, charting new directions for the oil and gas industry after COP2.

It was organized by the University of Dundee in conjunction with the Center for Energy, Petroleum, Mineral Law and Policy (CEPMLP) and White and Case LLP.

Barkindo expressed concern about the industry’s ESG footprint and stranded asset risk.

He said the environmental aspect of ESG may outweigh the need to address social and development issues.

Barkindo called for industry stakeholders to work together to ensure a conducive investment climate that is sustainable and can work for producers, consumers, developed and developing countries.

“To put it simply: the sustainability of the energy system is at stake.

“Oil saw an investment decline of around 30% in 2020 due to the COVID-19 pandemic, and investment today is far from the 2014 peak.

“We have heard the recent call from G7 climate, energy and environment ministers for oil and gas producing countries, including a reference to OPEC, to play a key role in ensuring a stable and sustainable global energy supply.

“That’s what we do, day in and day out.

“At the same time, the G7 communiqué also committed the group of major industrialized consumer countries to end funding for most fossil fuel projects abroad by the end of 2022.

“It’s hard to reconcile those two statements,” he said.

He said that from the perspective of the developing world, if billions of people who suffered from a lack of access to energy felt excluded from harnessing the energies that helped power the developed world, that could sow new divisions.

His father said it could widen the gap between haves and have-nots, North and South, adding that no one should be left behind in the energy transition.

In terms of tackling climate change and reducing emissions, he said he was convinced the oil industry could be part of the solution.

“We have no doubt that the resources and expertise of the oil industry can once again be harnessed to help develop cleaner and more efficient technological solutions, contributing to lower emissions in the context of a low energy future. emissions.

“For example, carbon utilization and storage, including direct air capture, blue hydrogen and other technologies, can be harnessed, as well as the promotion of the circular carbon economy, to improve overall environmental performance.

“OPEC is willing and able to play a key role.

“As we have seen through the prism of recent events, any talk of the oil industry being relegated to the past – as well as stopping new oil and gas investment – ​​is misguided.

“We have to follow all the right transition paths and understand that there is not just one path for everyone,” he said.

He said that different countries around the world have varying capacities and needs, particularly with regard to equity, historical responsibility and the principle of common but differentiated responsibilities and respective capabilities.

He said there are many pathways to reducing emissions, as outlined by the Intergovernmental Panel on Climate Change (IPCC), adding that all should be considered as viable options. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma