How has the energy landscape changed since the last WPC Energy Congress in Calgary in 2023?
Pedro Miras (PM): The sector has always been very focused in delivering energy to everyone, but now I think we are much more focused on balancing the three pillars of affordability, security of supply and sustainability. For years we have been very focused on sustainability, and started to take affordability and security of supply for granted. Following Covid-19, the war in Ukraine and other conflicts in the Middle East, we have realised that we have to be much more balanced in our approach. And we have to modernise our attitude to energy security. In the past we have mainly focused on oil and gas reserves. This is an important tool, but we need to update the way that we think about these reserves. Shared data and the use of AI can help countries to reduce the amount that countries are spending on this, whilst still maintaining security of supply. That being said, we also need to make sure we do not repeat past mistakes and focus too much on energy security at the expense of the other two pillars. All three are interlinked.
What can policymakers do to ensure a more stable environment?
PM: The most important thing is to understand that they need to be technology agnostic, putting in place headline targets rather than deciding on technology pathways. This has happened successfully in the past, for example with targets to reduce the sulphur content of diesel—companies decided themselves on which technologies were needed to meet the target. If we want to have a net zero target, then put that target in place and the technologies that are not compliant with it will drop out of the market. Some policymakers are currently supporting specific technologies, which is bad for the sector.
What are the challenges for energy firms looking to make investments in the current environment?
PM: It’s clear things are much more difficult now. In 2015, the hydrocarbons sector was investing $1.3 trillion In 2023 it was $1.1 trillion. This is not because of a lack of demand—the world consumes more and more oil and gas every year. The primary reason is the regulatory framework. Some policymakers are putting different measures on the table in different countries that make it difficult for companies to decide where to put their money. The best tool for finding ways to deliver energy in the future is via innovation and technology. For this we need a stable regulatory landscape. The EU, for example, in its attempt to phase out internal combustion engine vehicles, has caused much uncertainty for both car manufacturers and oil and gas companies. It’s clear we are going to continue needing hydrocarbons, with growing demand from emerging markets offsetting the transition to lower carbon fuels in developed countries. The world is consuming around 630 exajoules per year of energy, and oil and gas forms around 50% of this. That is the same mix that was saw 50 years ago. So we have to continue investing. If we don’t, ironically, we risk emissions rising—because developing countries will continue to use outdated technologies, such as inefficient coal plants.
We have seen a lot of volatility in oil and gas prices over the past few years. How does that affect decision-making?
I think volatility in prices is not the key driver. I have seen oil at $9/bl, and I've seen oil at $150/bl. And in all those times, companies would continue investing. They understand that the price of oil and gas is volatile, and part of their job is to manage this. The problem is not the price—the problem is uncertainty in regulation.
Is the industry working hard enough to get the next generation of professionals into the energy sector?
This is a really key question. At the World Petroleum Congress in Madrid in 2008, we focused on exactly this. A lot of young professionals don't want to work in our industry. There is a perception that it is not an industry of the future. This is not true, we are an industry that will continue to create high quality jobs and products long into the future. So how do we address this perception? By doing something that we have never been very good at—communicating. We have to invest effort and money in explaining to society that our industry does a lot of good. We do many, many things that are vital for the global economy, not only making fuels for the power and transport sectors, but also making plastics, chemicals and other key products. It is vital for the welfare of all countries that we explain this and begin to attract more talent to our industry.
At WPC Energy we have started to take action on the topic. We have an international Young Professionals Committee (YPC), and organise Youth Forums every other year, after our main Congress. We also carry out mentoring programmes and surveys of young professionals on the basis of which the committee looks to take concrete actions.
To learn more visit www.wpcenergy.org and www.wpcenergy2026.org
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