Ultra-high gas prices lead to surge in oil prices and pressure of climate agenda: Rosneft

Rome, Oct 28 (UNI/Sputnik) Ultra-high gas prices will lead to an even stronger “warming up” of oil prices amid the climate agenda pressure on the global energy market, which leads to reduction of investment in hydrocarbon production, CEO of Russia’s Rosneft, Igor Sechin, said on Thursday.
“Citi and Goldman Sachs banks estimate that ultra-high natural gas prices can create an additional oil demand of up to 1 million barrels per day, triggering a gas-like disbalance and further ‘warming up’ oil prices.” Sechin said at the Eurasian Economic Forum.
According to Sechin, the price of gas in Europe in oil equivalent reached $200 per barrel, which is twice as high as the oil price. Therefore, generating companies and industry regulators are facing a dilemma: on the one hand, it is necessary to ensure reliable energy supplies, on the other hand, the European Union made voluntary commitments to reduce greenhouse gas emissions by abandoning coal and oil generation.
“Under the pressure from climate activists, the implementation of joint projects with international companies is being terminated, which forces the majors to reduce investments in oil and gas production, redirecting funds to renewable energy. It is the climate agenda that is now putting pressure on the world oil and gas market,” Sechin went on to say.
“Based on the current trends in the implementation of projects, the accumulated deficit of investments needed to meet the demand for oil could amount to $135 billion in 2021-2025,” the Rosneft chief added.