Qatar Economic Forum/ Former Minister of Energy to QNA: Energy Sector Played Decisive Role in Advancing Qatar's Economic Growth
Doha, May 22 (QNA) - HE Former Minister of Energy and Industry Abdullah Bin Hamad Al Attiyah said that the energy sector played a decisive role in advancing the economic growth of the State of Qatar, adding that the sound strategies adopted by the State to optimally utilize natural resources were effective in developing the national economy, as well as enabling the State of Qatar to occupy a distinguished position in the world in terms of the strength of the economy.
In an interview with Qatar News Agency (QNA) on the occasion of the Qatar Economic Forum 2023 that will kick off Tuesday, His Excellency said that the State of Qatar plays an important role in the global energy sector, as it is one of the largest producers and exporters of LNG in the world, and it directs huge investments to developing oil and gas fields and various energy projects to enhance production and export, provide job opportunities and stimulate other economic activities. Its strategy relies on diversifying energy sources to enhance its position as a major player in the global market, HE explained.
He pointed out that the State of Qatar possesses huge reserves of natural gas, which made it a strong competitor on the global stage, in addition to its advanced infrastructure and technology in the energy industry, which makes it capable of competing and exploiting global market opportunities.
He noted that Qatar is one of the most prominent suppliers of natural gas to the European market, which prompted it to enhance its investments, as well as develop and expand distribution networks and export to European markets over the past years. He expects the demand for natural gas will remain strong in the European market, which provides additional opportunities for Qatar to enhance its share in this market. Qatar is also working to expand its partnerships and develop its presence in other regions of the world, as it signs agreements and strategic partnerships with other countries to develop and exploit energy sources, which contributes to strengthening Qatar's international relations and its role as a major player on the international scene.
Regarding the global economy's ability to overcome energy shocks, Al Attiyah said that through his many years of experience in the energy sector, he believes in the vitality and dynamism of the energy sector, adding that the global economy was able to overcome crises of energy shocks, such as the oil price crisis in 1973 and the oil crises in 1979, 2008 and 2020. He pointed out that in each case, global economies dealt with these shocks and were able to recover and grow again, noting that these shocks reflect economic, social and environmental challenges and impacts.
Therefore, it is important to work on promoting energy sustainability to reduce the impact of future energy shocks on the economy, and this includes strategies to adapt to energy shocks such as improving energy efficiency, investing in diversifying energy sources, developing renewable energy technology, promoting innovation in the energy sector, improving the distribution and storage system, and developing policies and procedures to promote energy sustainability.
With regard to the current prices and encouragement for more investment in the energy sector, His Excellency explained that there are many factors and considerations that govern price levels, as the current price of crude oil can affect investment decisions in the energy sector differently according to companies, investors and geographical regions, noting that when the price of crude oil is high, there are more incentives for producers to increase investment in developing new oil and gas fields and expansion of production, which supports the growth of the energy sector, provides new job opportunities and increases the volume of global production. However, we must note that investment in the energy sector requires a comprehensive analysis of the future expectations of the market and the financial sustainability of projects, he explained, adding that some investors may hesitate to direct further investment to the energy sector if they expect future market fluctuations or a decrease in the demand for oil. In short, the current price of crude oil can affect energy sector investments in various ways, and the extent of the response depends on several economic and political factors, he added.
On the fair price for producers and consumers, the former Minister of Energy and Industry stressed that the price of crude oil is affected by several factors such as supply and demand, global geopolitical tensions, the growth and slowdown of the global economy, and natural events in production areas. Therefore, determining a fair price for both parties depends on the current economic and political conditions. From the producers point of view, high prices of crude oil enhance their revenues and support their investments in the oil industry, while from the point of view of consumers, higher prices of crude oil can lead to higher fuel costs, affecting their ability to bear the energy import bill, HE said.
As for determining a fair price for the two sides, HE said that the interests of producers and consumers must be taken into account, and this requires achieving stability in the oil markets and a balance between supply and demand, adding that a fair price also depends on economic and political factors that can change over time. At the moment, it is not possible to determine a specific fair price for crude oil due to the fluctuations in the oil market.
With regard to the rapid transformation in the energy industry and its impact on the future of security, energy supplies and prospects, the former Minister of Energy and Industry stressed that traditional energy sources such as oil and natural gas play a decisive role in the energy scene right now, and they are expected to retain their importance in the near future. However, it must be recognized that these sources are considered non-renewable and cause greenhouse gas emissions that contribute to climate change. The future of energy is expected to witness an increase in diversification and reliance on renewable energy sources in light of the growing interest in sustainable development, rising awareness of climate change and the advancement of solar and wind energy technology at a rapid pace, as well as the new sources such as hydrogen.
He went on to explain that investing in clean technology and developing energy storage technologies play an important role in achieving the sustainability of this vital sector. With the development of technologies related to energy storage, conversion and distribution in more efficient ways, the cost approaches acceptable levels, which makes it more attractive for investment. For example, battery storage technologies have advanced greatly, allowing solar and wind energy to be used even when renewable sources are not directly active.
He noted that accelerating the energy transition requires improving energy efficiency, encouraging innovation and strengthening international cooperation as transformations face challenges, the most important of which is the cost of production. The commitment of governments, companies, societies and individuals to promoting energy sustainability contributes to achieving positive developments. In this context, it is important to support research and development and adopt clear policies to promote energy sustainability and achieve a more sustainable transformation in the energy industry.
On the repercussions of climate change and the development of new practices, methodologies and standards and their impact on the traditional energy sector, HE explained that climate change is a global issue facing all mankind at the present time, and this has led to a radical shift in the approaches and practices of the energy industry, as many countries and companies have realized the importance of investing in developing alternative energy sources to reduce greenhouse gas emissions and negative impacts on the climate, and achieve sustainable development goals.
He pointed to the significant development of the alternative energy industry in recent years, as it witnessed progress in various fields such as solar energy, wind energy, hydropower energy, and thermal energy. This development enhances, for example, the ability of countries to generate sustainable and clean electricity based on local sources, reduces total dependence on a single source, and increases the diversity and independence of energy supplies, which improves the sustainability of the energy system.
At the conclusion of the interview with QNA, HE Former Minister of Energy and Industry Abdullah Bin Hamad Al Attiyah added that with the improvement in the efficiency of the technology used in the production of alternative energy, its costs continuously decrease, and renewable energy sources become more effective, and their ability to compete increases, which means that alternative energy sources can become more economically attractive, stimulate larger investments in this sector, and reduce reliance on traditional energy sources. Therefore, the impact of the alternative energy industry on the traditional energy sector is multifaceted and one of the main effects is the shift from heavy reliance on fossil fuels to the use of clean and renewable energy sources. On the other hand, the alternative energy industry requires a change in the structure of the sector, which leads to redirecting investments and modernizing the infrastructure. This also requires developing the energy network system to facilitate the distribution and storage of alternative energy. This shift could affect companies and workers in the traditional energy sector, as it requires skill development and professional reorientation to keep up with the changes. (QNA)
