Green energy is stalling: OMV CEO says Europe won't give up gas until 2050
While the EU is discussing an accelerated transition to solar panels and wind turbines, the reality is that gas remains the main source of energy. According to OMV CEO Alfred Stern, Europe will be dependent on gas imports for decades to come - at least until the middle of the century.
Why gas is still needed
Stern emphasised that gas will be a key fuel for power generation and industrial heating. That is, we cannot do without it for the time being, even if wind farms and solar power stations are being actively developed.
OMV's main argument is that in order to reduce prices, it is necessary not only to invest in "green" energy, but also to develop hydrocarbon production in parallel. Otherwise, Europe risks ending up with expensive electricity and dependence on suppliers outside the EU.
"We’ll need gas longer than many thought just three or four years ago. The only way to sink prices will be to increase the offering. We need more production".
Betting on Romania
OMV is already planning for decades to come. The company is developing the EU's largest gas field, Neptun Deep, in the Black Sea off the coast of Romania. Its reserves are estimated at 100 billion cubic metres. To understand: this is enough for about four months of consumption of the entire block. The launch is scheduled for 2027.
Context
Just three or four years ago, forecasts were much more optimistic: it seemed that green energy would displace gas faster. But the war in Ukraine, price hikes and the slowdown in infrastructure projects have shown that abandoning fossil fuels will take longer.
And while the EU argues about the pace of the green transition, energy companies like OMV are preparing a contingency plan: gas will be around for a long time to come.
Source: Bloomberg
