An April leader on Opec’s problems, to accompany the long piece Tom and I did on the cartel (below). As ever, the  full article is available on Petroleum Economist’s website.

STOP going on about renewables. They’re a distraction from the real business of supplying energy: they lack the energy density and user friendliness of petroleum, which will continue to make an unmatched contribution to the smooth running of society.

That was the gist of one of the arguments made by Saudi Arabian oil minister Ali al-Naimi at last month’s Opec Seminar – a conference held in Vienna the week after the cartel’s official March meeting. Energy from non-fossil fuel sources should be called “supplemental”, not “alternative”, said al-Naimi.

He’s certainly right about petroleum packing a bigger punch and about oil’s unrivalled practicality. The threatening sub-text – that if consumers focus too much on alternatives, producers won’t invest in the upstream and there will be more price spikes – is less convincing. Energy policymakers are aware of the shortcomings of renewables, which is why more – and not less – investment is needed in them; why more research and development is needed; and why consumer governments should legislate more to incentivise renewables. (…) The rest is only for subscribers, I’m afraid.