Russian oligarch says we haven’t yet reached peak oil

Igor Sechin went from Putin's deputy to a CEO position at Rosneft

Sechin leaned into the fact that fossil fuels still account for over 80% of global primary energy consumption and are indispensable to modern society – and developing countries due to their unparalleled energy density and ease of transport.

"Diesel is nearly 30 times more energy-dense than hydrogen, and natural gas is 270 times superior to wind and solar energy," he noted, citing research from McKinsey and other experts.

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These attributes, he argued, make fossil fuels irreplaceable in meeting the world’s growing energy needs, especially in emerging economies.

By 2035, global oil demand is projected to rise by six million barrels per day, fueled by increased consumption in countries like India and other developing nations.

Sechin emphasised that improving the living standards of populations in these regions to half the level of developed nations would necessitate a near-doubling of oil production.

Challenges of the energy transition

He pointed out that achieving the low-carbon energy goals could not be realised without monumental investment.

In order to meet the climate targets of the Paris Agreement by 2050, over $70trn would be required, a feat far beyond the capabilities of current green economy companies.

Sechin’s insights hold significant implications for energy-dependent nations, including those in Africa, where balancing fossil fuel reliance with sustainable energy development remains a key priority amid growing energy demands and economic development.

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This also extends to broader geopolitical themes, including criticising the United States’ protectionist policies and lobbying for energy transitions, which he described as barriers to global economic equality.

He called for a more pragmatic approach to energy policy, focusing on economic realities over ideological ambitions.