Alexander Novak speaks at the “Global Energy as the Foundation of Economic Growth and Well-Being: In Search of Balance” panel at the Russian Energy Week International Forum

September 26, 2024

Alexander Novak, Deputy Prime Minister of the Russian Federation. spoke at the “Global Energy as the Foundation of Economic Growth and Well-Being: In Search of Balance” panel at the Russian Energy Week International Forum.

Other discussants included Secretary General of the Gas Exporting Countries Forum (GECF) Mohamed Hamel, Executive Vice President and Minister of Oil of the Bolivarian Republic Delcy Eloina Rodriguez Gomez, Minister of Energy of the Islamic Republic of Iran Abbas Aliabadi, State Secretary for the Development of Bilateral Relations of the Ministry of Foreign Affairs and Trade of Hungary Illes Boglarka, Deputy Prime Minister of the Republic of Belarus Viktor Karankevich, and Minister of Energy of the Republic of Uzbekistan Jurabek Mirzamahmudov.

The panel focused on aspects of the global energy market operating amid the growing demand for global energy in the next 20 years, on the role of traditional and renewable energy, and on the effect of wrongful restrictions imposed on hydrocarbon-producing countries.

Alexander Novak pointed out that, over the last ten years, demand for global energy had increased by 13–14%. In the next 20 years, primary power consumption will increase by 25%. There will be structural changes in both power consumption and the range of sectors that shape the global demand for primary power. In particular, the Deputy Prime Minister reminded his audience that digital technologies today consumed 8–10% of power, a figure that will double over the next three years largely because of increased consumption by e-vehicles. Despite the growing share of renewable energy, hydrocarbons continue to play a key role in the global energy balance.

The demand on global energy markets will be covered by traditional energy sources, hydrocarbons, primarily oil and gas. Today, annual oil consumption is growing by 1–2%. By 2050, we will see a consumption rate of about 120 mbd (million of barrels per day) instead of today’s 102 mbd. Gas consumption will grow even faster: by 2050, there will have been an increase of about 35% compared to today’s levels. That is, we can state that, despite a small dip in the market share of hydrocarbons, they will still dominate in meeting the global demand for power,” Alexander Novak said.

The Deputy Prime Minister also reminded his audience that Russia is a key actor on the global oil market. The FEC development strategy through to 2050 envisions retaining this global leadership by using state-of-the-art technologies, achieving technological sovereignty, modernizing oil, gas and the electric power sector, developing new logistics routes, transport and port infrastructure.

 

Source: the website of the Government of Russia.

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