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

Tesla Carbon Credit Sales Reach Record $1.78 Billion in 2022

Tesla’s carbon credit sales are making headlines again as it reached a new record in 2022. The company reported that Q4 carbon credit sales...

Clean Energy Transition Investment Hits New Record – $1.1 Trillion

Global low-carbon or clean energy transition investment jumped 31% in 2022 with a total of $1.1 trillion, drawing level with capital for fossil fuels,...

Lenovo Unveils 2050 Net Zero Goal, Enters Carbon Credits Deal

Lenovo has revealed its goal to reach net zero greenhouse gas (GHG) emissions by 2050, which the Science Based Targets initiative (SBTi) approves, and...

Voluntary Carbon Credits Market Can Be Worth $1 Trillion in 2037

The total value of carbon credits traded in the market to help entities achieve their net zero goals can be worth $1 trillion as...
CARBON INVESTOR EDUCATION

Abandoned Oil Wells and Carbon Credits

You’ve probably seen dozens of pictures before that look exactly like the one above. An active oil field littered with pumpjacks, all churning out oil...

Is Offsetting Carbon Worth It?

Is offsetting carbon worth it? This question has never been more controversial right now and it deserves a good answer, especially if you're into...

How Does Carbon Capture and Utilization Work?

Carbon capture and utilization technology is not only useful, but a necessary strategy to reduce atmospheric CO2 levels, and stall an increase in global...

Top 4 Carbon Stocks To Watch In 2023

Carbon stocks, credits and capture technology are getting a lot of interest from investors. Companies will attract even more capital in 2023.