IRBISIO | Cleantech Infrastructure Fund’s Post

In his latest paper, CGAI Energy Security Analyst and Manager of the Energy Security Forum Joe Calnan focuses on the #economic, #EnergySecurity, and #environmental implications for #Canada from the prospect of declining #oil demand. Check it out below!

👀 $5 Billion Goal and the Future of Africa at Stake 👀 World energy independence and economic development have become battles of the ages. The continent has around 7 million barrels of oil daily, with significant unexplored reserves in regions such as South Africa and Namibia. We can say without any shadow of a doubt that the continent's potential is vast! The same applies to natural resources in the gas sector, with projects in #Mozambique and the Republic of #Congo. This is just the tip of the iceberg when considering Africa's role in the global energy market—things are just getting started. However, any development journey has its challenges, and the financial landscape in Africa has been a significant bottleneck. Financing has become an increasingly complex subject for everyone involved in the energy market these days. Environmental concerns and pressure from activists have led Western investors to be cautious and restrictive regarding new endeavors. For instance, the East African Crude Oil Pipeline (EACOP) project faced significant funding challenges when Standard Chartered withdrew a $1 billion deal due to environmental opposition. As we know: any action is followed by a reaction. That's why the African Petroleum Producers Organization (APPO) and the African Export-Import Bank are spearheading the establishment of the Africa Energy Bank. ➡️ Why is this so important? Let's think together! The initiative seeks to raise $5 billion in initial capital through contributions from 18 member countries, including Nigeria and Ghana. There are also expectations of additional contributions from other sources, such as Gulf state banks. The game plan is clear: Africa, with its unique energy context and many undeveloped resources, must find funding sources to address its development needs and reduce poverty. This situation is more than a chicken-egg scenario where the pressure from environmental activists is justified. We are dealing with one of the most populous continents, which is set to grow even more in the coming years. The need for energy and infrastructure is critical for Africa's development and survival. At the end of the day, we will need to get used to these kinds of battles—not because we are eager to strengthen Africa's industry in terms of numbers but because we understand that development begins with the responsible use of resources. These resources are the stepping stones for a better life for Africa's citizens. I don't want to be naive—I know there are significant social problems and corruption that need to be addressed. But denying Africa the opportunity to develop is not a fair statement. #insightspablocosta #africa

African Energy Chamber is not much different from any other chamber, trade union or company, we always stand by our beliefs for as long as we believe in them. However sometimes due to a number of reasons, we have to accept that our efforts do not bring the expected result. Just a short quote from the article below by our Executive Chairman NJ Ayuk JD, MBA.: "We have explained, over and over, why African countries, businesses, and communities still need support from international oil companies (IOCs), foreign governments, and investment institutions for oil and gas projects... In July 2021, when it became apparent that reasoning was not yielding results... But the calls to stop financing African oil and gas have only grown louder and more insistent." Yes, we have tried forever to explain (and will not stop trying) that the wealthy countries that are now blocking fossil fuel investments built their economies on oil, gas and coal; we have always explained that Africa alone stands for less than 4% of global fossil fuel emissions and that Africans were not the reason for global warming; we have been pointing out that even rich EU countries are bringing back natural gas and sometimes even coal; we have been clearly saying that Africa is not looking for charity and giveaways, Africa is looking forward to working on a mutually beneficial basis. Making #energypoverty history is a complex thing, it includes global collaboration and sometimes even the hardest tries of your own can be blocked by other stakeholders that have different beliefs than you. We now have complete understanding that Africa will have to take all of this in its own hands. And this is why the African Energy Bank is introduced as an independent African financial institution to support energy projects. Collaborative efforts of the African Export-Import Bank (Afreximbank) and African Petroleum Producers’ Organization are going to weaken the dependancy of the African energy sector on the foreign companies and countries. There is money and Mr. Ayuk is clearly explaining the key sources: - Profits from oil and gas operations that are already ongoing; - Pension funds investments; - Private wealth Investments in the energy sector are low risk and high return historically, the risk does not come from the business itself, it comes from the policies and foreign influence. Should these be in African hands, it will become the great opportunity especially given some advantages in Africa such as cheaper cost of labour. From my personal perspective, such an institution will also open the doors for the potential stakeholders that are not part of the agenda popularised by the global west: not only powerful energy nations such as China, Russia and Brazil will be able to invest, they will also be able to use their equipment, technology and knowledge. The more we will have free markets, the less pressure will be coming from abroad. Please take your time and read the full article:

For decades, #China has been the powerhouse of global #oil #demand growth, driven by its rapid #industrialization and #urbanization. However, recent trends indicate a slowdown, signaling a significant shift in #global #energy dynamics. As the world’s second-largest economy transitions towards a service-oriented and #green #energy model, its appetite for oil is showing signs of waning. This deceleration reflects structural changes in #China’s #economy, including stagnating manufacturing, and a growing emphasis on renewable energy sources. Combined with a broader push for decarbonization under its #net-zero goals, China’s once-insatiable demand for oil may no longer fuel global markets as it did in the past. The implications are far-reaching, potentially reshaping oil markets, #global #trade, and energy investment strategies. Emerging economies like #India, #Southeast Asia, and parts of #Africa could become the new growth engines for #oil #demand, while major oil exporters recalibrate their strategies to address a diversifying market. This transformation underscores the urgent need for businesses, investors, and policymakers to adapt to shifting trends in the global energy landscape. #EnergyTransition #GlobalOilDemand #ChinaEconomy #SustainableEnergy #NetZero #OilMarketTrends #Decarbonization Varun Sivaram, Jiang Kejun, Xiliang Zhang, Pan Jiahua, Daniel Yergin, Amrita Sen, Kevin Johnstone

🌍 Breaking: African Nations Challenge Global Energy Paradigm! 🚀 In a bold move, 18 oil-producing African countries are seeking $5 billion to establish an "Energy Bank" by 2025. Why? Because when it comes to development, these nations aren't ready to put all their eggs in the green basket! 🥚🧺 Key Insights: 18 members of the African Petroleum Producers' Organization (APPO) are leading the charge Each country aims to contribute $83 million to the cause The African Export-Import Bank is matching funds, bringing the total to $3 billion 600 million Africans still lack access to electricity. That's more than the entire population of North America! Africa is sitting on a goldmine: 125 billion barrels of oil and 620 trillion cubic feet of natural gas As Haytham El Maayergi, VP at African Export-Import Bank, puts it: "Africa's context is totally different." It's not about ignoring climate change; it's about balancing development with sustainability. Is this the wake-up call the energy sector needs? Can Africa leapfrog into a sustainable future while utilizing its vast resources? Let's discuss! What's your take on this ambitious project? #AfricanEnergy #SustainableDevelopment #EnergyTransition #FossilFuels #ClimateAction #GlobalEnergy #EconomicGrowth #AfricanDevelopment #EnergyPolicy #InternationalTrade Thoughts? 💭👇

📊 Natural Gas Trends Across OECD Regions in August 2024 📊 This chart provides a snapshot of natural gas growth rates across OECD regions (Americas, Asia Oceania, and Europe) year-on-year for August 2024: OECD Americas: A mixed trend with a decline in indigenous production (-1.6%) and minimal growth in gross consumption (0.5%). Imports and exports saw growth of 3.6% and 3.0%, respectively. OECD Asia Oceania: Indigenous production dropped by 1%, but strong demand led to a 3.7% rise in gross consumption. Imports and exports also showed moderate growth. OECD Europe: Indigenous production surged by 7.3%, while gross consumption dropped significantly by 6%, highlighting a potential shift in energy dynamics as Europe aims for efficiency and alternative energy sources. #NaturalGas #OECD #EnergyTrends #EnergySecurity #Sustainability #EnergyTransition                                                                                             (Source:  IEA's Monthly Gas Statistics)

Sri Lanka’s Underappreciated Asset: Offshore Natural Gas Developing natural gas resources will help the country overcome its economic crisis, provide energy security, and lower carbon dioxide emissions. By Thomas L. Davis and Amila Sandaruwan Ratnayake Published July 27, 2024 in The Diplomat, https://lnkd.in/g2rYKxPg Article Summary: Developing Sri Lanka’s discovered gas fields, returning exploration, and changing the energy sector from oil- and coal-based to natural gas are economically viable and desirable, assuming sustainable and responsible development. Key benefits include the alleviation of Sri Lanka’s debt; the creation of a secure, inexpensive, and reliable energy source for decades; and the reduction of its CO2 emissions to meet its international obligations in manner that does not economically deprive its population…Recent international events show that most nations with much larger CO2 emissions will place their energy security above climate change concerns if their economy and social well-being are threatened. Compelling arguments have been made that underinvestment in oil and gas worldwide will increase energy insecurity by constraining future supplies, increasing costs, and becoming a threat to global economic growth. Avoiding this will require far more than the present levels of investment despite claims that renewable energy will adequately supply the world’s needs during the energy transition. With sufficient investment, development, and exploration, Sri Lanka has the resources to avoid energy insecurity, while lowering its debt and CO2 emissions. #SriLanka #energytransition #naturalgas #energy Mike Umbro Kurt Neher Badrul Islam Irina Slav Syed Muhammad Osama Rizvi David Blackmon Daniel Yergin Michael Shellenberger Elon Musk #oilandgasindustry #drilling #naturalgas #energytransition #energy #petroleumgeology #petroleumengineering #reservoirengineering Pacific Section AAPG New Orleans Geological Society Houston Geological Society DALLAS GEOLOGICAL SOCIETY API - American Petroleum Institute Rocky Mountain Association of Geologists Oklahoma City Geological Society EAGE (European Association of Geoscientists and Engineers) SEAPEX (defunct group) SEAPEX LI #SriLanka Geological Society of Sri Lanka (GSSL) #PDASRILanka Petroleum Development Authority of Sri Lanka #BellGeoSpace #SPGlobal San Joaquin Geological Society SJGS Indian Oil Corp Limited #oil #oilandgas #petroleum #petroleumindustry #usaid #gasexploration #oilexploration

African Nations Launch 'Energy Bank' for Oil and Gas Development -Inspired by Irina Slav's article on OilPrice.com, October 14, 2024 In a groundbreaking move, 18 African nations are set to launch their own 'Energy Bank', challenging the global energy finance landscape. This initiative, led by the African Petroleum Producers Organization, aims to fund oil and gas projects across the continent, addressing the void left by Western financial institutions' retreat from fossil fuel investments. The Driving Force African countries, frustrated by Western banks' refusal to finance oil and gas field development, are taking matters into their own hands. With 600 million people lacking electricity access and 1 billion relying on traditional fuels for cooking, these nations view resource development as crucial for economic growth and poverty alleviation. The Plan The project requires $5 billion in total: - 18 member states have each pledged $83 million, totaling $1.5 billion - The African Export-Import Bank (Afrexim Bank) will match this amount - The remaining $2 billion gap is to be filled by external institutions Untapped Potential and Future Implications Africa holds vast untapped resources: 125 billion barrels of oil and 620 trillion cubic feet of natural gas. This initiative could redefine energy development in emerging economies and spark global discussions on equitable energy transitions. The Balancing Act The African Energy Bank represents a bold statement: African nations are determined to chart their own course in energy development, balancing economic needs with their right to benefit from natural resources, while navigating global climate concerns. How do you think this development will impact the global energy landscape and conversations around equitable energy transitions? Share your thoughts below. #AfricanEnergy #EnergyTransition #GlobalDevelopment #SustainableFinance

The history of #climateaction and #climatefinance could be described as The Boulevard of the Broken Promises. A new study found that G7 economies keep dedicating large amounts of funds to expand #fossilfuel, particularly #oilandgas, exploration and extraction, despite having pledged to do the opposite. In 2022 G7 economies, including Canada, UK, Japan and South Korea, dedicated $143bn on fossil fuel expansion versus $102bn on renewables. That’s 143 billion dollars to many. 143 billion broken promises

The key to a successful energy transition away from coal is good institutional quality supported by anti-corruption procedures and clear rules. 💻 Roula Inglesi-Lotz, University of Pretoria #BusinessAndEconomy #RenewableEnergy