Santos CEO says the world will never give up fossil fuels

afr.com:

The chief executive of the $24 billion oil and gas group Santos says the world will always need fossil fuels in some form, and there will be a large role for gas beyond 2050.

Kevin Gallagher predicts Australian policymakers will shift their viewpoint further towards that of the United States and the United Kingdom and realise that gas will be central in a smooth and sensible transition to a lower carbon economy, and still be needed after that.

But demonising gas as Australian policymakers are doing will not help, he said.

“I’m not sure the world can leave fossil fuels behind,” Mr Gallagher told The Australian Financial Review Energy & Climate Summit on Monday.

Kevin Gallagher, CEO of Santos at the The Australian Financial Review Energy & Climate Summit. Dion Georgopolous

He said he spoke to resources giant BHP a day earlier, which had reviewed about 100 separate reports from various organisations on the energy transition, “and all of them have a very big role for gas going forward”.

The Albanese government last week released a discussion paper on gas strategy, outlining its key objectives as supporting the decarbonisation of Australia’s economy; promoting Australia’s energy security and affordability; maintaining trade relationships; and helping trading partners reach net zero.

But it omitted the role of Australian gas in bolstering energy security for its Asian allies, leaving some producers annoyed that it underplays a key driver for investment in the sector and will reinforce Japanese gas buyers’ fears that Australia is “quietly quitting” LNG. Australia’s LNG exports were worth a record $92 billion in 2022-23.

Mr Gallagher said there was a clear difference between aspirations and what would occur around the world.

“I’