In 2022, global oil and gas industry profits were approximately $4 trillion, or $4 trillion. This is a very high figure, more than double the average of 1,500 billion in recent years, due to the crisis triggered by the war in Ukraine. The figure was given by Fatih Birol, President of the International Energy Agency (IEA). Despite these monstrous profits, Birol warned countries dependent on oil and gas revenues that they should prepare to reduce their dependence on oil as demand will decline in the long run.
“Middle Eastern countries in particular need to diversify their economies. To me, COP28 (UN climate summit, ed) could be an excellent milestone to change the fate of Middle Eastern countries,” he said. “It is no longer possible to govern a country whose economy is 90 percent dependent on oil and gas revenues because the demand for oil will decrease,” the IEA said in a video-linked speech at a conference in Oslo. This year’s UN climate talks will be hosted by the UAE, a member of the OPEC group of oil-producing countries.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
