The energy industry is going through a period of uncertainty that is characterized by extreme price volatility and by the gloomy short-term prospect of the global economy. But the current situation doesn’t alter fundamentally the basic drivers of our industry: oil and gas demand will continue to rise; supply is structurally tight, energy prices have no reason to remain low. We are facing two major challenges: energy transition and climate change.

To maintain an adequate balance between supply and demand, it is both the oil producing countries and the IOCs’ responsibility to increase production. IOCs can offer their investment capacity and their ability to manage large projects supported by cutting edge technologies. Frontier domains such as ultra-deep offshore, extra-heavy oils, complex gas reservoirs or LNG will account for a growing share of IOCs’ production. However meeting energy demand primarily requires better access to reserves. The key lies in the hands of host countries, but they have to be convinced that hydrocarbon projects really bring a positive contribution to local development and meet with their local needs and expectations.

Investing more in new hydrocarbon production capacities will not be sufficient. We also need to save energy and to develop other energy sources. Let’s not see hydrocarbons and renewables as mutually exclusive fuels. All energy sources are required to meet demand in a sustainable manner. Let’s not regard oil and gas production as irreconcilable with tackling climate change. Fossil fuels will still remain a major energy source for several decades but at the same time, the climate issue is a critical global challenge and we have to reconcile these targets by developing more energy efficient products and economically viable capture and storage solutions. Consumer and producing countries should have a broader and more open dialogue with each other about these critical issues.