#LUKOIL presents forecast of global liquid hydrocarbons' market development in Brussels

In Brussels, LUKOIL presented the long-term forecast for the development of the global market of liquid hydrocarbons in the context of transition to a low-carbon economy. The vision presented by the company is based on various scenarios for the development of renewable energy sources, while the key global trends affecting the hydrocarbon industry are improving the fuel efficiency of the transport sector and developing the electric vehicle market.

According to Vice President for Strategic Development of LUKOIL Leonid Fedun, electric and hybrid cars will dominate Europe by 2035, while, according to him, “at the same time, there will be 2 billion cars with internal combustion engines in the world, and it is essential to maintain flexibility in relation to those people who will make a choice in their favor”.

The transport sector accounts for nearly 70% of the EU's greenhouse gas emissions. At the same time, according to Fedun, the European transport sector needs to shift to a new technological level in the context of energy storage production to maintain the pace of evolutionary development of electric cars, while technologies that increase the environmental efficiency of conventional car fuel already exist. For instance, LUKOIL's processing facilities in Bulgaria and Romania produce environmentally friendly fuel products and lubricants.

The company's direct connection with the European market is the main driver of the development of “green” projects. “Our motivation for implementing environmental programs is realted to the fact that we are a European company - there are four LUKOIL refineries in the EU. Additionally, Europe is the largest importer of our fuel. Therefore, we feel a commitment to meet the current trends, including climate ones, that exist on the market,” Fedun said.

Shifting all LUKOIL plants to green hydrocarbon basis is one of the company programs aimed at improving energy efficiency and solving climate issues, which can reduce greenhouse gas emissions by 3-4 million tons a year.

The company’s deep involvement in European business and its responsible approach to business projects in the region allows its shareholders and investors to feel confident regardless of OPEC+ decisions.

According to Fedun, the global community is currently experiencing a period of “cheap” oil, which will last until 2040. At the same time, this oil sector stance also affects the pace of development of alternative energy technologies, which, from the perspective of the Vice President of LUKOIL, are cost-effective only when the oil price is 80 dollars per barrel.

Thus, over the next decades, oil is bound to remain the key energy carrier. The core issue that directly affects the achievement of global climate goals is the development of sustainable energy mixes with significant share comprising of traditional energy sources that are adapted to modern environmental requirements through far-reaching production modernization.

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