AMMAN — A lack of investment in the fuel sector might affect the local market negatively, according to an energy expert.

Amer Shoubaki, an energy expert, raised concerns about an impending global energy crisis.

“The crisis is on the horizon due to insufficient global investments in the oil and gas industries,” Shobaki told The Jordan Times.

If this crisis materialises, it could have a profound impact on Jordan, a nation heavily reliant on fuel imports, Shoubaki said. Jordan imports virtually all of its petrol and 96 per cent of its gas needs.

He said that “the crisis is currently brewing and could manifest at any moment”. This is exacerbated by the existing investment gap, with no substantial investments to meet the rising energy demand. As a result, there is a continuous decline in surplus energy reserves, further exacerbating the problem.

He also highlighted the noticeable decline in investments in the oil and gas sectors, while investments in renewable energy have been growing steadily.

Shoubaki stressed that the current level of investments falls far short of what is required. He pointed out that an annual investment of $500 billion and a total of $12.6 trillion by 2045 are needed to address the challenges related to the oil sector.

These developments come at a time when global energy investments are expected to reach approximately $2.8 trillion in 2023. Out of this, over $1.7 trillion is projected to be allocated to clean energy sources, such as renewables, electric vehicles, nuclear power, low-emission fuels, efficiency enhancements, and heat pumps. The remaining funds, approximately a trillion dollars, are anticipated to be directed towards coal, gas, and oil.

Shoubaki further highlighted that investments in the oil and gas sector are facing opposition from various entities seeking to curtail such investments. This includes the International Energy Agency, which recently predicted that the demand for fossil fuels may peak before 2030. However, Shoubaki expressed scepticism about these predictions, suggesting they might be more aspirational than realistic.

However, Hisham Aqel, energy expert, disagrees with these projections of a looming energy crisis.

“The current supply of fuel is more than sufficient, especially in light of the global shift towards renewable clean energy sources,” Aqel told The Jordan Times.

The decline in fuel consumption by China caused by the huge shift to renewable energy sources might lead to a surplus in energy in the market, Aqel said.

He highlighted that new oil distributors and producers are entering the energy market, like Guiana and oil producers like Canada, Argentina and Brazil are increasing their production.

“Global markets are saturated with fuel, which is causing fuel prices to drop by almost $13 a barrel,” Aqel added.

 

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