On October 27, the Chief Executive Officer of Rosneft, Igor Sechin presented a keynote speech at the special session “Reliable energy and global energy transition” at the XV Eurasian Economic Forum in Baku, Azerbaijan.
According to Rosneft’s executive, politics has had too much influence on the economy lately, and the energy market is a striking illustration. There is no longer a single energy market, and no rules exist.
Volatility has exceeded the limit over the past decade.
In his speech, Sechin mentioned that it was not the events in Ukraine or the pandemic that contributed to the current energy crisis but the massive underinvestment in the industry caused by the irresponsible policy of an accelerated “green” transition.
The anti-Russian sanctions further exacerbate the energy crisis and inflation.
He also noted the industry’s substantial underinvestment.
According to Sechin, oil and gas remain one of the world’s most important energy sources, providing more than 50 per cent of global demand. Over the past seven years, huge investments in renewable energy have exceeded an incredible $2.6 trillion. Less than three percentage points have been gained by renewable energy over the same period.
The acute shortage of energy resources and the rejection of Russian hydrocarbons unwound inflationary spirals worldwide.
At the same time, Russia cannot be so “cut out” of the global economy. The share of the world’s largest country in the supply of basic raw materials amounts to 15 per cent.
In 2021 alone, oil exports from Russia to India and China exceeded 80 million tonnes. Thanks to improved infrastructure and the development of unique projects such as Vostok Oil, Russia could help meet the growing needs of the Southeast Asian, Indian and Chinese markets.
The massive project is expected to reduce price volatility and ensure the long-term stability of the oil market.
Rosneft, on its part, is committed to establishing mutually beneficial partnerships throughout the entire supply chain, from production to the sale of fuel to end users.
The creation of new global centres was also among the highlights of the Forum. There will be a defining stage in history associated with developing cross-border corridors, implementing major infrastructure and joint industrial projects, and the increasing role of regions in the world economy.
For participants in these processes today, it is crucial to launch economic interaction soon, and one of the key priorities will be the organization of clearing settlements. As a result, Eurasia will become a new growth zone.