Qatar says inflationary pressures impacting oil and gas industry

Qatar’s Minister of State for Energy Affairs said, on Monday, that inflationary pressures have led to rising production costs, delays in investment decisions, and increased policy uncertainty in the oil and gas industry, Reuters reports.

Minister Saad Al-Kaabi said in a statement the sector needs to help people recognise that demands to cancel hydrocarbons “are not only unrealistic but, as recent months have proven, are harmful to a realistic, accelerated transition”.

Kaabi said that hydrocarbons “are not going to disappear any time in the near future”. Therefore, cleaner forms of hydrocarbons were essential for a responsible transition.

“Natural gas is certainly the cleanest fossil fuel, and a much-needed reliable and economic solution to manage intermittency issues, when the sun is not shining, or when the wind is not blowing,” he said.

Qatar is the world’s top LNG exporter.

READ: Germany close to a long-term LNG agreement with Qatar