Necdet Pamir, who is an Energy Expert at CIU, made a statement in relation to the reasons for the petrol and natural gas price increase across the world
Countries such as the TRNC that are dependent on foreign oil and natural gas, should turn to renewable energy
At an event organized by the Cyprus International University (CIU) Petrol and Natural Gases Club, the reasons for the price increase of petrol and natural gas across the world was examined.
At the event, Department of Petrol and Natural Gas Engineering academic staff Necdet Pamir stated that when it comes to world energy consumption, oil and natural gas are of great importance, and that these resources will continue to predominantly hold a place within future scenarios.
Drawing attention to the fact that each of these resources are not only utilized as fuel, Pamir went on to say, “At the same time, both petrol and natural gas have vital importance within the field of industry and in the production of electricity”.
Explaining that the prices of oil and natural gas are not only dependent on supply and demand, Pamir noted that their prices are formed depending on many more factors (OPEC and non-OPEC country policies, storage capacities, spare production capacity, seasonal factors, global warming and natural disasters, speculative movements, geopolitical factors, etc.).
Pamir added that due to the global shutdown process that was experienced across the world due to the pandemic that begun at the end of 2019 and the beginning half of 2020, the demand for all energy resources was brought down to the lowest levels, he went on to elaborate, “Due to this extraordinary reduction in demand, prices dropped at an amazing rate”.
Expressing that after the shutdown process, with the confidence that the vaccination brought in particular on a global scale and motivated by eliminating the pressure created by the closure; that this time, a completely opposite process begun, Pamir continued, "Afterwards, due to increase in travel and a revival in industrial production, there was an extraordinary increase in the demand of petrol and natural gas”.
Pamir emphasized that due to difficulties in meeting the desired demand, that the prices increased at an unforeseen rate.
Noting that within the October 2021 report of the International Energy Agency, there are 4 different scenarios, Pamir stated that it is predicted that petrol prices will be very different in light of these scenarios.
Explaining that within the “Announced Policies Scenario” that is based on the assumption that countries will fulfill their commitments to less carbon emissions, more renewable resource use, more efficient energy systems and less consumption, it is estimated that OECD countries oil import price will rise to $77/barrel in 2030 and $88/barrel in 2050, Pamir went onto share, “However, within the “Net Zero Emissions in 2050” scenario of the same report, oil prices were predicted as $36/barrel in 2030 and $24/barrel in 2050”.
Pamir also noted that in light of these results, countries such as the TRNC and the Republic of Turkey, that are almost completely dependent on foreign petrol and natural gas, should focus more on policies based on renewable resources.