Oil & Gas

The International Energy Agency (IEA) recommends keeping new oil discoveries in the ground to achieve global climate goals. African and Caribbean nations are under pressure to choose between economic growth and climate action. Developing countries require support from high-income nations in the form of financing for renewable energy development.

As the world shifts towards sustainability, there's a debate on whether to exploit new oil and gas resources. Some argue that new oil areas offer a chance for lower-carbon extraction, while others, including the IEA, stress the need to move away from fossil fuels entirely for climate goals. However, many recent oil finds are in low-income countries in Africa and the Caribbean, offering them significant revenue opportunities that are hard to resist.

For years, the Western world has heavily used fossil fuels for global power and profits, making countries like China, the U.S., and the EU major polluters. These nations are now aiming for decarbonization, but achieving a green transition requires support from all countries.

To combat climate change, the IEA suggests reducing oil and gas production and leaving new oil finds untouched. However, there's still high global demand for fossil fuels due to insufficient renewable energy capacity. Developing "low-carbon" oil operations in Africa and the Caribbean is seen as a way to reduce emissions and boost their economies.

The World Bank reports that Africa held about 40% of natural gas discoveries from 2010 to 2020. Some nations are turning to this region for gas following the Russian-Ukrainian conflict, raising concerns about climate efforts. To replace gas demand, more investment is needed in renewable and nuclear energy, along with financing from high-income countries for developing nations' renewable industries.

Despite this, many African and Caribbean nations find it hard to turn down oil revenue, especially as they see Western nations as hypocritical. The African Energy Chamber criticizes wealthy nations for not considering Africa's economic needs in their green agendas.

Leaders like Senegal's President Macky Sall argue that telling Africa to leave its resources untouched is unfair, especially when many lack electricity. Guyana's President Mohamed Irfaan Ali highlights the value of their forest, storing carbon, as he rejects calls to halt oil production.

Critics blame foreign oil companies for Africa's fossil fuel dependence. Unicef ambassador Vanessa Nakate calls for more investment in Africa's renewable sector, giving leaders reason to keep fossil fuels in the ground.