Excellencies, esteemed guests, ladies and gentlemen,

Good morning to you all.

It is a great pleasure and indeed an honour to be here today at the prestigious Federation of Austrian Industries.

In preparing for this meeting, I was fascinated to learn that this historic building, aptly called the “House of Industry”, was designed by renowned architect Karl König and inaugurated by Emperor Franz Joseph on 25 March 1911. This splendid edifice is truly an historical landmark and just one more example of what makes Vienna such a magnificent and culturally rich city.

Before I continue, allow me to thank the following esteemed leaders for inviting me to participate in this special meeting:

·         HE Former Minister Dr. Werner Fasslabend, President of the Austro-Arab Chamber of Commerce

·         Mr. Mouddar Khouja, Secretary General of the Austro-Arab Chamber of Commerce

·         Mr. Georg Knill, President of the Federation of Austrian Industries, our host here today; and

·         HE Abdullah Tolah, President of the Arab Ambassadors Council and Ambassador of the Kingdom of Saudi Arabia to Austria.

I am pleased to see so many esteemed Ambassadors representing OPEC Member Countries, as well as non-OPEC countries of the Declaration of Cooperation, in addition to the Director General of the OPEC Fund for International Development, HE Abdulhamid Alkhalifa.

Excellencies, ladies and gentlemen,

Since 1946, the Federation of Austrian Industries has been dedicated to promoting Austrian industry both within Austria and throughout Europe.

Today, its 4,500 members make up more than 80% of domestic manufacturing companies. This, of course, includes Austria’s important energy sector.

I was very impressed to learn that the "Producing sector", which includes manufacturing, mining, energy and water supply, as well as construction comprises 67,000 Austrian companies, employs about one million people and generates nearly 29% of the domestic GDP.

These numbers make it clear that industry, and particularly the energy sector, continue to play a crucial role within the wider Austrian economy.

From a global perspective, OPEC sees a bright future ahead for energy with robust long-term growth expected for oil and gas.  

Let’s consider these statistics:

·         We see energy demand rising by an estimated 23% by 2045, reaching close to 359 mboe/d in 2045

·         This will be fueled by a world economy that is expected to double in size, growing from $138 trillion last year to $270 trillion in 2045

·         We also forecast a rapidly expanding world population that will surpass 9.5 billion people, with most growth seen in non-OECD developing countries

·         Urbanization alone will account for over half a billion people moving to cities around the world by 2030. To put this figure into an understandable context, Vienna’s population is 2 million. That equates to 300 new Viennas from now to 2030!

These are the realities we see based on our data and research, and it means that the world will require all forms of energy to meet the rapidly growing energy needs over the long term.

Yes, renewables will expand at a faster rate in the decades to come, but oil and gas will still be the predominant fuels in the energy mix.

In fact, oil alone will retain its share at almost 30% in 2045 as world demand for oil soars to an estimated 116 mb/d by that time. Other major energy forecasters are in agreement with OPEC on this, including the US Energy Information Administration, which sees global oil demand rising to a level of 120 mb/d by 2050.

To meet this level of demand, the industry will need to significantly ramp up investment. According to our research, cumulative oil-related investment requirements from now until 2045 will amount to approximately $14 trillion or around $610 billion on average per year.

Securing this vital funding is essential if we hope to maintain security of supply and avoid unwanted volatility in the years ahead.

Despite these facts, I am certain you are aware of some predictions for peak demand by 2030 and calls for a discontinuation of investment in hydrocarbons.

These voices are unfortunately not in touch with reality, and their views are not based on robust research and data.

Right here in Europe and across the world, we are seeing large corporations and governments re-evaluate and re-calibrate their transition strategies and timelines based on the realities I have just described. Indeed, the rush to adopt “Net-Zero” strategies was misguided and simply not realistic.

For example, we have recently seen reports of automakers scaling back or delaying their production of electric vehicles, with some even declaring bankruptcy. Moreover, the European Automobile Manufacturers’ Association reported that sales of battery-powered cars dropped by 11.3 per cent in Europe during March due to a decrease in demand.

Policymakers are also coming to terms with the significant challenges related to electricity grids, battery manufacturing capacity, critical minerals and rising costs due to high inflation.

These realities are resulting in some renewables projects being delayed or even discontinued due to rising costs and supply chain constraints. 

Excellencies,

Let me make it clear that OPEC fully supports the need to reduce emissions and address climate change, but this cannot come at the cost of energy security, and it will not happen overnight.

Energy transitions in the past have taken decades to evolve, and have typically added energies to the mix, not taken them away, as advocated in some circles today.

At COP28, OPEC’s Member Countries made their voices heard in advocating for a balanced, equitable and inclusive approach to addressing climate change − one that is realistic, pragmatic and one that considers the unique capacities and circumstances of developing countries.

After all, there is no “one size fits all solution” – there are multiple pathways to achieving the same objective.

In this regard, we must also not neglect the dire needs of the billions still living in energy poverty, and this means ensuring that no one is left behind in any energy transition.

Another important area I would like to underline is the key role of technology.

The oil industry has been a world-leading technology innovator since its inception, and I believe it can leverage this expertise to enhance the world’s efforts to reduce emissions.

Many of our Member Countries have been active on this front for years, advancing innovative projects such as carbon capture utilization and storage, direct air capture and circular carbon economy approaches, not to mention the wide adoption of renewables.

Excellencies, ladies and gentlemen,

To sum it up, OPEC is advocating for a holistic approach to our energy future.

It will be an approach that leverages all energies, employs all technologies and respects the circumstances of all people.

It is an approach that is balanced and inclusive − benefiting energy producers, consumers and the global economy.

Indeed, this energy future we envision will offer hope, opportunity and prosperity for the generations to come.

Thank you.