HomeCarbon MarketsCould the price of oil hit $200 a barrel because of climate...

Could the price of oil hit $200 a barrel because of climate change?

Oman’s energy minister warned conference attendees recently “Recommending that we should no longer invest in new oil… I think that’s extremely dangerous.”

His biggest fear is that if we abruptly stop investing in fossil fuel, “there will be energy starvation, and the price of energy will just shoot (up).”

The United States Energy Information Administration’s long-term projection issued in February anticipates crude oil to hit $89 in the US in 2030 and $185 by 2050.

They admit that several factors could impact these figures, including other supply sources, access to renewable energy, and emissions taxes.

According to S&P Global Platts, OPEC is worried. Their concern is that an increase in oil prices could affect market volatility and threaten oil project investments.

Their concerns haven’t seemed to stop the push for net-zero emissions. Carbon pricing is taking off as global carbon markets continue to expand. In fact, countries that represent 70% of the global gross domestic product are committed to meeting international climate objectives – with all eyes set on eliminating emissions.

The Minister for Industry and Advanced Technology in the United Arab Emirates, Sultan al-Jaber, is not as concerned. “Even in the most ambitious energy transition scenario, oil and as will still be needed for many decades to come.” He went on to say that the Middle East’s reserves account for many of the least carbon-intensive barrels globally.

International Energy Director Fatih Birol said, “It’s an interesting race. Unless everybody finishes the race, nobody wins the race.”

If the oil industry can find ways to utilize its resources to achieve net-zero emissions goals, it may very well flourish — all while helping the world meet its 2050 deadline. With a bit of ingenuity and some unexpected partnerships, concerns of massive increases may become a thing of the past.

Most Popular
LATEST CARBON NEWS

Xpansiv’s Key Carbon Market Achievements for 1st Qtr of 2023

For the first quarter of 2023, Xpansiv achieved significant results, particularly on its carbon market performance. Here are the key achievements. First up, the dominant...

Which Deserves a Carbon Credit – Nature or Technology?

The United Nations (UN) has drafted a document that will define a new global carbon market for years to come, which seems to favor...

Brazil’s Bill Will Allow Loggers to Earn $24M from Carbon Credits

Brazil’s Congress passed a bill that will make carbon credits available to private companies with forest concessions, serving a first step in regulating the...

Global Renewable Energy to Break Records in 2023, IEA Says

Global additions of renewable power capacity will increase by a third this year, says the International Energy Agency (IEA). In the IEA's 2023 Renewable Energy...
CARBON INVESTOR EDUCATION

What are the Effects of Methane Emissions and Why Should We Care?

What are the effects of methane emissions? That’s the multi-million dollar question in the world’s battle over global warming as methane was often overlooked...

Carbon Credits and the Future of Sustainable Business: Exploring Best Practices

The trading of carbon credits can help entities and the world meet their climate goals by cutting carbon emissions and practicing sustainable business. While...

Revolutionizing Textile Recycling with HTC

A Virginia-based startup, Circ, has developed a unique hydrothermal processing technology for recycling blended textiles, like polyester-cotton blends. With fast fashion's emissions and environmental...

Carbon Credits and the Sustainable Development Goals: Aligning Climate Action with Global Priorities

Carbon credits from climate actions represent a crucial part of a strategy to mitigate climate change while supporting the global priorities on advancing sustainable...