On Wednesday, the heads of leading energy companies called for governments around the world to manage consumers’ oil and gas demand amid the energy transition to avoid future oil and gas price shocks.
"As policies around the world change and governments look to try to reduce their economies' dependence on oil and gas... if we do not balance the demand equation and only address the supply, it will lead to additional volatility," ExxonMobil CEO Darren Woods said.
BP CEO Bernard Looney added, "At the end of the day, if supply goes away and demand does not change, that only has one consequence and that is an escalation in price rises."
At the moment, western energy producers are under heavy pressure from investors and governments to shift to renewables to slash greenhouse gas (GHG) emissions in the coming decades to tackle global warming.
Meanwhile, governments around the world only have prepared plans to sharply reduce their economies' carbon emissions in the coming decades to meet the 2015 Paris climate agreement to limit global warming.
