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The World Energy Congress is underway in Istanbul. Delegations from 85 countries and more than 250 presidents, ministers, and other senior officials are taking part in the event. On the of the most anticipated speeches at the event was that of Russian President Vladimir Putin.
Without ever uttering the word "crisis," the Russian leader outlined a rather bleak and pessimistic picture awaiting humanity in the next 15 years. What did Putin say? Tsargrad has recorded the most striking theses from the Russian president's speech.
New Energy Won't Save Us
According to data that Vladimir Putin quoted for the medium-term perspective, in 2040 oil will still make up 26% of global energy, coal will amount to 25%, natural gas 24%, biomass and biofuels only 10%, nuclear energy 7%, hydroenergy 3%, and other renewable sources will account for 5%.
How the Oil Crisis was Formed
Vladimir Putin hinted towards the "shale miracle," but did not directly name it as one of the causes of the current crisis. According to him, high oil prices and the availability of financial resources enabled the world to develop forms of energy production that were previously considered unprofitable. As a result, this market was faced with significant overproduction and price collapse.
A Hydrocarbon Apocalypse?
According to the Russian president, we are witnessing the longest cycle of falling investment in the energy sector in 45 years. In addition, we can observe the lowest oil reserves in 70 years. In addition, companies are abandoning investment projects. Later, the Russian president stressed that, despite this situation, Russia continues to invest in mining.
The Crisis is Hitting Consumers
In Vladimir Putin's words, overproduction, which we can now see will ultimately turn into a deficit, hits not only producers, but also consumers. "Freezing or even reducing oil production is the only right decision for saving the stability of all global energy," Vladimir Putin asserted. He also said during his speech that consumers "should behave responsibly."
Sanctions make an Oil Fiasco Imminent
The Russian leader is sure that the situation can only be resolved by acting in unison while "really considering each other's interests." He stressed that "attempts to constrain the development of the energy sector for the sake of certain countries' political ambitions are unacceptable."
"The authorities of some countries practice recommending turning businesses into profitable products and abandoning the purchase of fuel by the shortest routes and at competitive prices," Putin said, all the hints here being fairly transparent. Nevertheless, he said, sanctions "still do not yield the desired result for their initiators."
Vladimir Putin also recalled that "the export of Russian energy resources guarantees the successful functioning of many world economies. Our oil and gas constitute more than a quarter of the total fuel balance of the European Union." Russia is providing Europe with an uninterrupted supply of gas for more than 50 years.
As for the good...
"We are talking in detail about and plan to realize the Turkish Stream with our Turkish partners and President Erdogan. Russia also intends to actively expand its supply of hydrocarbons to the East, to China, Japan, and India," Vladimir Putin 'calmed' all detractors who doubt the success of Russia's long-term projects. Russian gas pipelines will run both West and East no matter what.
In fact, as regards Turkey, Vladimir Putin did not forget to turn attention to the difficult situation in the country, noting that it "might not be the best time for such big events" for Ankara. He went on: "We have very carefully and anxiously followed what is happening in Turkey. I want to congratulate the Turkish people and their president for having managed to keep the situation under control. We are very pleased that Turkey is recovering," Vladimir Putin concluded his speech.
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