Oil & Gas

Dr. Ibrahim Al-Muhanna, Vice Chairman of the Board of Directors of the Saudi Society for Energy Economics, has expressed optimism about the oil market’s performance in 2025, citing the supportive role of OPEC and the OPEC+ alliance. In a recent interview with the Specialized Energy Platform, he confirmed that oil will remain a priority in meeting global energy demand, despite the increasing focus on clean energy. Al-Muhanna emphasized that reducing emissions, rather than eliminating fossil fuels entirely, will be key to ensuring a smooth energy transition and preventing resource shortages.

Dr. Al-Muhanna also highlighted that demand for energy is expected to continue increasing in 2025, following current trends. OPEC and OPEC+ countries are closely monitoring the market to maintain a balance between supply, demand, and inventory levels, ensuring stability. He pointed out the strong commitment by member states to production quotas, with additional voluntary reductions by eight countries. The OPEC General Secretariat is continuously assessing market conditions and developments related to inventories and supply.

While discussing the energy transition, Dr. Al-Muhanna clarified that the global shift is not about entirely moving away from hydrocarbons but rather focusing on reducing carbon emissions and pollutants. This approach aligns with the goal of achieving carbon neutrality by 2060, without undermining the role of traditional energy sources like oil. He also emphasized the growing importance of low-carbon technologies, such as blue and green hydrogen, in achieving sustainable energy solutions.

In terms of global energy demand, Al-Muhanna stated that oil will continue to dominate, despite the rise of gas, hydrogen, and renewable energy sources like solar power. He noted that global oil demand has risen significantly from the 1970s, reaching over 100 million barrels per day and is expected to keep growing. Al-Muhanna also pointed to regional initiatives like Saudi Arabia’s desert afforestation project, aiming to boost environmental sustainability while addressing the increasing energy needs driven by population growth, particularly in developing countries like Africa.