Talk About An Energy Dilemma

Many weeks have passed and the COP28 buzz has settled. From citizens complaining about how their governments mismanaged funds to sponsor delegates for the conference, to people (like me) getting fashion inspirations from the attendees, and some others dropping think pieces on the conference, a lot has unfolded, and I hope this letter puts a few things into perspective.

COP28

Conference of the Parties (COP) is an annual international meeting – with a central focus on the climate system – where delegates from various countries, referred to as parties, give progress reports, discuss challenges, review policies, and make emission-cutting pledges. The COP is the apex arm of the United Nations Framework Convention on Climate Change (UNFCCC).

So, COP28 is basically the twenty-eighth session of the climate change conference. Countries take turns to host the meeting and last year’s host was the United Arab Emirates. A report on the UNFCCC website revealed that some 85,000 participants, including 150 Heads of State and Government, were in attendance, making it the biggest-ever UN climate summit. For a comprehensive overview of the COP28 conference, refer to this insightful article on Forbes.

What does this have to do with the energy industry?

The key message of the COP is to reduce greenhouse (GHG) emissions and safeguard our planet from the perils of climate change. However, the climate deal from COP28 was criticized for lacking clarity on actions to manage these emissions, identified by the UN as primarily human-induced. The organization asserts that fossil fuels (coal, oil, natural gas, etc) are the main culprits in the global warming scenario. Thus, for some persons and organizations, it only makes sense to phase out fossil fuels as it will significantly address climate change concerns. Climate activists argue that investing in and transitioning to renewable energy (solar, wind, geothermal, green hydrogen, etc) can improve the chances of doubling the global average rate of energy efficiency by 2030.

Nevertheless, oil and gas are the lifeblood of certain economies; so, the whole idea of sidelining or abandoning fossil fuels and the industry seems like an unfair ask, especially for OPEC members. Experts in the African oil and gas sector have maintained that deserting an estimated 130 billion barrels of crude oil reserves and over 15 trillion standard cubic meters of natural gas is not a wise strategy for a continent that urgently seeking to make energy poverty history.

These arguments present a significant dilemma: Should developing nations harness their abundant natural resources (including fossil fuels) for economic development, or should they prioritize efforts to avert climate change?

*Whew*

Now you understand why this industry is considered ‘beautiful yet complex’. Well, I will love to know your thoughts, and possibly gain more insights on this matter.

Talk to you in my next letter.

Stay E-luminated!