The general worldview, observing from the impact of the ongoing Ukrainian/Russian war, keeps everyone on their toes with regards to the looming global recession and scary food scarcity, plus the obvious energy crisis resulting from the disruptions in global supply chains that link many countries (mostly within the European Union bloc). The expectations about agricultural commodities (wheat and various other grains) from Ukraine, and natural gas from Russia, send very discomforting signals that keep the entire world restless with anxiety about their consequences on global trade, and, indeed, the entire world economy. These manifesting challenges of food scarcity and the natural gas supply crisis (in the jump in prices and then, non-availability) have pushed the affected international partners to start re-strategizing on sourcing other means for energy supplies, especially now that energy has been recognized globally as a top priority.
In the global energy industry, for instance, the energy consumption for heating, cooking, all forms of transportation, and running electronic appliances, or even for manufacturing, is fast being adapted for energy-efficient devices that utilize less energy to perform and achieve the same results in homes and buildings, and for production of mercantile goods. It is as clear as crystal that “energy security is the foundation of all progress, including economic, social and climate progress”, according to Sultan Al Jaber, in his opening address, when he called for maximum energy, minimum emissions, at the Abu Dhabi International Petroleum Exhibition Conference, ADIPEC 2022, in Abu Dhabi, United Arab Emirates. The fact continues to point at the uncertainty of what becomes of the global economy in the coming years; especially when the world’s population hits 9.7 billion people in 2050, which will see demand for increased energy production by an extra 30 percent to contain its future energy needs.
This issue of energy security as a foundation of progress attracts attention on the economic importance of fossil energy (in spite of the fact that carbon emissions impact on global warming is linked to fossil energies). Now, the big question, therefore, is, “could there still be another scientific option of minimizing methane gas emissions, while the natural gas is still actively harvested and utilized for its LPG and CNG productions, having been recognized for its cleanliness (both for clean cooking and heating fuels for homes/buildings, respectively)”?
By this, the global energy transition programme that would ensure energy security may need to seriously focus in the direction of an all encompassing energy mix, in a long term energy efficiency plan (vis-a-viz optimizing the cleaner energy utility that combines the development of the renewable energy infrastructure, while investing in the clean energies of tomorrow along with the consumption of natural gas but, with heavily reduced methane emissions concept). A research and development (R&D) programme on this, could still be further investigated scientifically, to ascertain if there is any other feasible process that could be innovatively discovered, and yet, strictly maintain a net-zero carbon emission that would not jeopardize the already established efforts on climate change mitigation actions by the United Nations, not to exceed +1.5℃. On that premise of energy security therefore, if per adventure it yields positive results for humanity, then progress in improving the global economy in the coming years shall be enormous because, gas reserves in the oil and gas rich-economies shall be further exploited for its positive economic gains and growth for continued national development in such economies.
However the future outlook may be for the global economy, the already mounting economic challenges, including inflation, as being presently felt in many economies, the times are not going to be that easy or rosy on humanity, but strategic economic policies and practices, recognized as opportunities that could offer cushioning effects on mankind, are definitely going to be aggressively pursued; the economic impact and the complexities the world currently faces from the ongoing Russian invasion of Ukraine, notwithstanding. On food security, considering the United Nations brokered deal, which the Kremlin has pulled out of, letting ships export grain from Ukraine through the Black Sea channels to Europe, the Turkish president has personally determined to revive the deal he brokered (on the same Ukraine’s Grain Export Agreement). Ships continue to leave from the grain corridor, despite Russia pulling out of the accord. It is indeed mind boggling for one to now realize and appreciate the very important role nations like Ukraine play in the global food supply chain.
If, from the dimension Sultan Al Jaber is pushing for the energy transition, not to discard fossil fuels (especially natural gas) but to operate a decarbonized fossil energy industry (applying carbon capture and storage) through inventive technology that would minimize the emission of methane gas into the working environment, there might lie the window of opportunity for the global economy to survive, and not be suffocated in the quest for the world’s energy solutions management.
-
business a.m. commits to publishing a diversity of views, opinions and comments. It, therefore, welcomes your reaction to this and any of our articles via email: comment@businessamlive.com
