Karim: Decarbonisation & renewable energy must grow at 6% to catch up with oil

Kola Karim, the Chairman of Shoreline Group, recently shared his insights on OPEC's World Oil Outlook and the evolving global energy landscape in an interview with CNBC Africa. Karim emphasized the significance of technology in addressing the demand and supply dynamics of the oil market and highlighted the need for decarbonization and renewable energy to grow by at least 6% to catch up with oil. He pointed out that while there is a push for renewable energy transition, global consumption and population growth continue to drive the demand for traditional energy sources like oil. Karim expressed optimism about Nigeria's energy prospects, citing the country's abundant natural gas reserves as a key asset for transitioning to cleaner energy sources. He stressed the importance of developing a diverse energy portfolio that includes gas, hydro, and solar power to ensure energy sufficiency and drive economic growth in Nigeria and across Africa. When discussing pricing dynamics, Karim predicted medium-term oil prices to range between $60 and $70. However, he highlighted long-term challenges for oil producers due to increasing global pressure against fossil fuels. Karim suggested that countries like Nigeria could capitalize on shifting market dynamics by investing in their natural reserves to meet global energy demands. Regarding OPEC's future influence, Karim believed the organization could strengthen its position as western countries face regulatory constraints on oil production. He anticipated OPEC and countries like Nigeria to play a vital role in replacing declining oil production from OECD nations. In terms of technology's impact on energy demand and supply, Karim acknowledged the potential of innovations like hydrogen to replace fossil fuels in the long term. However, he noted the need for substantial investment and development to make these alternatives viable competitors in the energy market. Karim's insights shed light on the complex interplay between traditional oil dominance, renewable energy growth, and evolving energy technologies in shaping the future of the global energy landscape.