Sabrina Valle and Liz Hampton

HOUSTON, (Reuters) – A global energy conference focusing on future technologies and low carbon strategies began in Houston Monday. Top executives representing the biggest U.S. corporations affirmed the necessity for oil over the next decade.

Four days of discussions at the World Petroleum Conference began with top executives Exxon Mobil Corp (NYSE : Chevron Corp (NYSE 🙂 and Halliburton(NYSE 🙂 Co are three of America’s largest companies. They all promote the necessity to transport oil and gas worldwide as we transition to cleaner fuels.

Coronavirus travel restrictions caused by coronavirus robbed the conference of some of it’s star power. OPEC secretary general Mohammed Barkindo, and the energy ministers of the Organization of the Petroleum Exporting Countries were forced to abandon plans to travel to Houston.

In fact, we are entering into a period where oil is scarce. Jeff Miller is the CEO of Halliburton energy services company. He said, “I think we are going into a period of scarcity for the first-time in a very long time.”

The world’s demand for fossil fuels has increased sharply since 2021. It is now at levels pre-pandemic and the oil price nearing those of 2019. Even though large multinational corporations, especially ones based in Europe have been reducing exploration and production to encourage renewable energy development, and governments are encouraging efforts to cut carbon emissions in order to combat rising temperatures, this is an impressive turnaround.

Exxon revealed Monday its plans to reach net zero greenhouse gas emissions in U.S. Permian basin operated assets by 2030. It is part of a plan that will reduce upstream greenhouse emissions intensity by between 40% and 50% by 2030 compared to 2016 levels.

Exxon CEO Darren Woods stated that “the fact is, the truth remains, under most credible circumstances, including net zero paths, oil and natural gas would continue to play a significant part in meeting society’s needs.”

American officials utilized the chance to speak about President Joe Biden’s clean-energy agenda and stressed the necessity to reduce fuel costs for consumers.

David Turk (Deputy U.S. Secretary for Energy) stated that the United States is deploying clean energy in a way never seen before.

Turk said that Washington would not be a hindrance to companies who want to boost domestic oil production, as long as the sector is trying to recover fully.

He stated, “We must ensure everyone has reliable, affordable and resilient energy.”

Companies including Saudi Aramco (SE:), Equinor, and TotalEnergies are also likely to speak Monday.

The week’s programme features eight ministers of energy from oil-producing top nations like Saudi Arabia and Kazakhstan. Attendance was low at the early sessions. Ministers representing Argentina, Equatorial Guinea and Turkey, Greece, Turkey, and Romania as well as the CEOs of BP (NYSE :). Sonatrach. and Qatar Energy all departed.

Organisers said their departure was caused by “travel restrictions, and concerns” regarding the Omicron version of COVID-19. A spokesperson stated that replacements are being sought, and included the addition of BP’s U.S. Chief to replace its CEO.

Due to production losses caused by the pandemic and shortages of natural gases and power in Asia, and Europe respectively, the impact of the virus will be felt. With travel restrictions, energy prices have fallen to multi-year lows after this autumn’s peak.

On Monday oil rose 3% per barrel to around $72, in the hope that Omicron would prove less harmful to oil demand. Also, after Saudi Arabia raised its selling price to Asia and the United States on Friday, Omicron was more favorable to the market.