Connect with us

Hi, what are you looking for?



Oman warns of $200 oil in dig at IEA climate advice

ParisFrance, Sept 9 – Oil producer Oman warned Thursday that crude prices could soar to $200 a barrel as it criticised the International Energy Agency’s ambitions of halting new fossil fuel projects to combat climate change.

The IEA called in May on for a halt to new investment in oil, gas and coal extraction in order to boost chances of holding down the dangerous rise in global temperatures.

But Oman’s energy minister, Mohammed al-Rumhi, said such “unilateral recommendations” were not helpful.

“Recommending that we should not invest in new oil… I think that’s extremely dangerous,” he said at a conference jointly organised by his country with the IEA on energy transition in the Middle East and North Africa.

“If we stop investing in fossil fuel industry abruptly there will be energy starvation and the price of energy will just shoot” higher and “in the short term we could see a 100 or 200 per barrel scenario,” said al-Rumhi.

Crude oil prices have been fluctuating around $70 per barrel recently.

“It’s very easy to sit in your comfort zone and talk about efficiency and solar and renewables… and then we forget a third of the world population is suffering from a lack of energy,” said al-Rumhi.

The criticism appeared aimed at the head of the IEA, Fatih Birol, who had urged countries in the Middle East and North Africa region to develop renewable energy.

Birol spoke about what he called a “bitter truth” that Middle East energy producing nations face: the countries which account for 70 percent of global GDP have undertaken to reach net zero carbon emissions by 2050.

Advertisement. Scroll to continue reading.

“This will have implication for oil demand and therefore for investments,” he said.


More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...