OPEC said IEA net zero emissions plan may intensify oil price volatility

According to a report from EnergyWorld.

The IEA said on Tuesday that if the world hopes to achieve net zero emissions by the middle of this century, investors should not provide funding for new oil, gas and coal supply projects.

OPEC, which owns 80% of the world's crude oil reserves in 13 member states, has its research department produced an internal briefing document on the IEA report, and Reuters saw a copy of this document.

The OPEC report stated that the claim that new oil and gas investment is not needed after 2021 is in sharp contrast to the conclusions often expressed in other IEA reports.

OPEC also said that a scenario in the IEA report may affect how companies invest and limit oil demand.

OPEC said that although the NSE (net zero) scenario is too ambitious in terms of assumptions and results, it will definitely affect investment decisions, which may inhibit the demand (growth) for fossil fuels such as oil and natural gas, because many decision makers and Oil and gas companies use the IEA's plan for strategic planning.

OPEC further pointed out that for many developing countries, the way to achieve net zero emissions without international assistance is not clear, and they need technical and financial support to achieve this goal.

OPEC stated that without greater international cooperation, global carbon dioxide emissions will not drop to zero by 2050.

Hao Fen Translated from Energy World Network

The original text is as follows:

OPEC says IEA net-zero pathway could add to oil-price volatility

OPEC has said that an IEA report suggesting that investors should not fund new oil projects to curb emissions could lead to oil-price volatility if it is acted on.

The International Energy Agency on Tuesday said investors should not fund new oil, gas and coal supply projects if the world wants to reach net zero emissions by mid-century, in its starkest warning yet to curb fossil fuels.

The research division at the Organization of the Petroleum Exporting Countries, whose 13 members sit on 80% of the world's crude oil reserves, produced an internal briefing document on the IEA's report, a copy of which was seen by Reuters.

"The claim that no new oil and gas investments are needed post-2021 stands in stark contrast with conclusions often expressed in other IEA reports and could be the source of potential instability in oil markets if followed by some investors," OPEC's report said.

OPEC also said a scenario in the IEA's report could affect how companies invest and limit demand for oil.

"While the NZE (net zero) Scenario seems overly ambitious in terms of assumptions and results, it will certainly influence investment decisions, which may curb demand (growth) for fossil fuels such as oil and gas, as many policymakers and oil & gas companies use the IEA's scenarios for their strategic planning," OPEC said.

OPEC made the further point that for many developing countries, the route to net-zero emissions without international help was not clear and they would need technical and financial support to get there.

"Without greater international cooperation, global CO2 emissions will not fall to net zero by 2050," OPEC said.