Category: AM-NC

Translation. Region: Russian Federal

Source: Rosneft – Rosneft – An important disclaimer is at the bottom of this article.

At the Energy Panel of the XXVIII St. Petersburg International Economic Forum, leading industry experts, politicians, scientists, government officials and heads of major international energy companies discussed current trends in the global energy market.

Their assessments and forecasts largely coincided with the visionary concept of the industry development presented by Rosneft CEO Igor Sechin. In his report “The Odyssey of the World Economy in Search of the Golden Fleece. The New Image of World Energy,” he announced that the current state of world energy is at the stage of forming a new image, caused by the multiple growth of electricity consumption, the generation of which will be provided by both fossil fuels and renewable energy sources. According to him, the optimal solution today is “the synthesis of traditional and alternative energy sources.”

The event, organized with the support of PJSC NK Rosneft, was attended by Chairman of the Board of Directors of Rosneft Mohammed Bin Saleh Al-Sada, Executive Vice President of the Republic of Venezuela Delcy Rodriguez, Chief Executive Officer of Pertamina Simon Aloysius Mantiri, Vice President of CNPC Zhang Daowei, Executive Director of Reliance Industries Panda Madhusudana Shiva Prasad, Academician of the Russian Academy of Sciences Alexander Dynkin, Minister of Energy of the Republic of Uzbekistan Jurabek Mirzamakhmudov, Chairman of the Supervisory Board of the non-profit initiative of the Japanese government for the development of low-carbon technologies Nobuo Tanaka, as well as President of TOFS Group David Gadzhimirzaev.

ENERGY TRANSITION WITHOUT TRANSITION

Mohammed Bin Saleh Al-Sada opened the discussion of Igor Sechin’s report, noting the depth of his analysis. “It was comprehensive – the way you showed that progress and energy are inseparable,” Al-Sada addressed Sechin.

The head of the board of directors of Rosneft drew the audience’s attention to the fact that, despite the active promotion of the idea of switching to renewable energy sources, the share of fossil energy sources in the energy balance has not changed in recent decades. He recalled that Igor Sechin mentioned in his report that fossil fuels account for 80% of the world’s energy balance. “And these statistics have not changed in the last 20 years! We flutter around these 80% of fossil fuels and energy sources, and, therefore, little has changed!” exclaimed Al-Sada, describing the situation in the global energy sector.

“In other words, we are essentially not making any transition away from hydrocarbons,” he concluded, emphasizing that the transition to renewable energy sources is being imposed on the industry and the public.

“I would also like to take the baton from Mr. Sechin and pass on my comment to you. This is food for thought: are we really moving from fossil fuels to renewables?” Al-Sada addressed the audience.

The Chairman of the Board of Directors of Rosneft also noted that the demand for energy for various reasons does not always coincide with the growth of production. “I would like to express two small thoughts in order to further color the valuable things that we heard in the words of Mr. Sechin. The lack of investment is already a reality in the hydrocarbon and energy sectors. This is what can really lead us to a serious shortage of energy. “If this trend continues, we may face a shortage of energy resources. This is not only my personal opinion, but also what a large number of analysts say, including the International Energy Agency and other respected experts, who in their reviews emphasize the importance of having sufficient investment in the hydrocarbon sector. Otherwise, we will face the risk of a shortage of primary energy!” Al-Sada emphasized.

THE FUTURE IS SYNERGY

Vice President of China’s CNPC Zhang Daowei noted that he listened with interest to the report of Rosneft’s Chief Executive Officer. In his speech, the top manager of the Chinese company expressed similar assessments of the development paths of the global energy sector – in particular, the need for synergy between traditional and new energy sources.

“We have always believed that in the context of the energy transition course, it is necessary to adhere to the synergetic, comprehensive development of traditional and new energy sources, fully take into account the characteristics and level of development of our countries’ markets, properly link the energy transition with energy security, and promote a fair and sustainable model of energy transformation,” Daowei noted.

According to the vice president, within the framework of this philosophy, CNPC, on the one hand, continues to increase the exploration and development of oil and gas fields at home and import high-quality resources from abroad, including strengthening long-term cooperation with Russia in the field of hydrocarbon trade. On the other hand, CNPC actively adheres to the strategy of “green”, low-carbon development and implements the development of the “three-step strategy” combining oil and gas projects using wind, solar, geothermal, hydrogen and carbon capture technologies.

Indonesia’s Pertamina President and CEO Simon Aloysius Mantiri said the company is pursuing a dual growth strategy that relies on both traditional resources and low-carbon solutions, with natural gas playing a major role in the country’s energy mix.

“Natural gas is at the center of our strategy to transition to cleaner fuels. And today we are expanding our capacity and ability to produce LNG for both domestic and export needs,” he said.

The head of Pertamina essentially repeated the thesis voiced in Igor Sechin’s report, and particularly emphasized that by achieving a balance of energy sources and a comprehensive approach, the company is capable of ensuring high rates of economic growth and, at the same time, carbon neutrality.

Reliance Industries CEO PMS Prasad said India does not choose between energy access and innovation. “It integrates both. By developing scalable, context-specific solutions, it addresses local priorities while making a significant contribution to global sustainability. From rural microgrids to energy-efficient data centres, India is turning its potential into a strategic asset,” Prasad said.

He stressed that international partnerships play a vital role in this ambitious endeavour. “Energy remains a key cornerstone of the strategic relationship between India and Russia. India values this trusting partnership and appreciates the cooperation built over decades. The leadership of both countries is committed to taking this partnership to even higher levels in the future,” the Reliance Industries CEO concluded.

NUCLEAR POWER PLANTS ARE NOT WRITTEN OFF THE ACCOUNTS

Rosneft CEO Igor Sechin noted in his keynote speech at the Energy Panel the growing interest in nuclear power generation worldwide and, accordingly, the growth of investments in this area. According to him, this is happening against the backdrop of growing energy consumption and in the future nuclear energy will be in demand along with fossil fuels and renewable energy sources.

Reliance Industries CEO Panda Madhusudana Shiva Prasad, speaking in turn about the prospects for the development of India’s energy sector, particularly emphasized the significant role of nuclear power generation.

“Gas, renewables supported by energy storage systems and a robust transmission grid, and nuclear power will play a key role. India’s ambitious nuclear programme, including small modular reactors, reflects its commitment to long-term energy security and decarbonisation,” Prasad said.

The revival of interest in investment in the construction of nuclear power plants was noted in the speech of the Minister of Energy of Uzbekistan Jurabek Mirzamakhmudov. He spoke about joint plans with Russia to build two units of 55 megawatts each, and two units of VVR-type reactors – water-cooled power reactors. The head of the ministry also reported that the country is installing power plants where gas is burned, hydropower is developing, the share of renewable sources is increasing, and storage systems are being created at the same time.

The Minister noted the content of Igor Sechin’s report, which provided a detailed analysis and reflected all the development trends in global energy, science and economics.

ENERGY SECURITY FIRST

In her speech, the Executive Vice President of the Republic of Venezuela, Delcy Rodriguez, supported the thesis expressed by the head of Rosneft that issues of ensuring energy security should be a top priority.

“We always advocate that the energy transition be carried out responsibly, taking into account reality, in order to avoid abrupt changes that could threaten energy security,” Rodriguez said.

The Executive Vice President of Venezuela named the main components of a stable energy system of the future: energy security, reliable supplies, accessibility for all, and at the same time respect for nature – with minimal impact on the environment.

Among the main threats to energy security, Rodriguez named illegal sanctions against producing countries and the hegemony of the dollar.

Chairman of the Supervisory Board of the Japanese government’s non-profit initiative to develop low-carbon technologies Nobuo Tanaka, in turn, noted that the answer to energy security issues is always associated with diversification of supply sources, increasing energy efficiency and searching for alternative energy sources, including renewable energy sources, nuclear energy and regulating the market through predictable policies.

CONTRARY TO LOGIC

The participants in the discussion drew attention to the political events of the last decades and stated that today geopolitics shapes the directions of economic cooperation. Moreover, often contrary to the logic of market expediency and economic efficiency.

Tanaka recalled in this regard how he discussed Germany’s energy policy with Chancellor Merkel in 2009: “I asked her why Germany does not use nuclear energy. She answered like this: Mr. Tanaka, I am a scientist, I know how important it is to use nuclear energy, but in order to use it in Germany, she said, give me the votes of the voters in exchange for it. Yes, she is a good scientist, but she is also a very smart politician.”

The professor is sure that despite her experience, Merkel made a very serious mistake by changing her policy on the use of nuclear power plants under pressure from public opinion. Another mistake was the refusal to use Russian energy resources and Russian natural gas. “I think she was misled,” Tanaka said.

“Geopolitics is a factor in the global economy of the 21st century. It is geopolitical interests that united the BRICS countries. The criterion for membership is not the application of sanctions against other members of the organization. But geopolitics has also become a kind of “trap” for Germany after Trump’s victory,” says academician of the Russian Academy of Sciences Alexander Dynkin.

He noted that Eurocrats are concerned about the complete rejection of energy supplies from Russia by 2027. “They are not stopped by the growth of costs, which undermines the competitiveness of the EU,” Dynkin noted and recalled that if in 2014 the US GDP was ahead of the EU GDP by only 12%, then last year the American economy was already 50% larger than the European one.

“Although the German energy crisis is formally over, the country paid for it with three years of stagnation, deindustrialization, inflation, and a migration crisis,” said the member of the Russian Academy of Sciences.

DIGITAL REVOLUTION

The thesis voiced in Igor Sechin’s report that the digital revolution is opening a new era in the development of the oil and gas industry received a warm response from the audience. In particular, David Gadzhimirzaev, CEO of the oilfield services company TOFS, thanked Rosneft for supporting innovation and developing technologies. He emphasized the importance of ensuring the availability, stability and reliability of resources, which can be provided by new technologies that will reduce the cost of lifting barrels to the surface.

“We all know that literally this year the energy strategy-2050 was approved, which includes the fact that by 2050 about 70% of the Russian Federation’s production will be from hard-to-recover reserves. Therefore, we, in turn, are not only working on the expertise, but also working on the production of new technologies,” Gadzhimirzaev said.

Department of Information and Advertising of PJSC NK Rosneft June 21, 2025

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