Global energy sector faces urgent transformation

The global energy sector is at a pivotal juncture, as countries grapple with the urgent need to overhaul consumption models amid rising technological demand. Igor Sechin, Chief Executive Officer of Rosneft, delivered one of the forum’s most important speeches during his keynote at the XXVIII St. Petersburg International Economic Forum (SPIEF).

Sechin’s address, titled “Odyssey of the Global Economy in Search of the Golden Fleece: The New Landscape of Global Energy,” formed the centerpiece of the high-profile Energy Panel at SPIEF. Organized with Rosneft’s support, the session brought together leading voices in energy to assess the sector’s rapidly evolving landscape.

Sechin emphasised that the digital revolution — spearheaded by artificial intelligence and big data — is dramatically increasing the global appetite for energy. These high-tech industries are especially electricity-intensive, with data centers becoming major consumers.

“The transformation of the global energy industry is not a future prospect — it is happening now,” Sechin said. “Countries face the dual challenge of ensuring energy security while transitioning to new models of consumption.”

Sechin invoked a line from Ecclesiastes — “That which is crooked cannot be made straight, and that which is wanting cannot be numbered” — to underscore the systemic imbalances in current energy policy. He warned that rushing into green transitions without addressing fundamental structural gaps could exacerbate existing weaknesses.

He also criticized the overreliance on renewables, noting that massive investments have not yet delivered expected stability.

“Power reliability issues and even large-scale blackouts have become common in several countries,” Sechin observed. The panel featured an array of influential figures, including:

Rick Sanchez, American journalist and RT host, moderated the panel. Sechin underscored Asia’s growing role in shaping the global energy market. Countries in the Asia-Pacific region are expected to account for roughly 60 per cent of the increase in electricity consumption in coming decades. India alone has seen peak demand surge by 70 per cent in just ten years.

He also praised China’s strategic dual-track energy policy: investing aggressively in renewables while maintaining a strong fossil fuel base. “China is moving toward energy independence,” Sechin said, citing its record investments in wind, solar, coal, and advanced coal-to-liquid (CTL) technologies.

China commissioned around 100 gigawatts of new coal-fired power capacity last Year — its highest in a decade — while remaining the world’s top investor in green energy and technology manufacturing.

Sechin also unveiled Rosneft’s synthetic oil initiative, developed using proprietary gas-to-liquids (GTL) technology in Russia’s Taimyr region.

Showcasing a sample of sulfur-free synthetic oil, he said, “We are ready to provide samples to any interested party.”

Rosneft’s breakthroughs in catalysis and clean fuel production underscore its broader commitment to innovation amid an uncertain energy transition. The Rosneft CEO called for greater recognition of nuclear energy’s role in ensuring stable, long-term energy supply. He highlighted China’s rapid growth in nuclear capacity, which has reached nearly 60 GW, with plans for 32 new reactors underway.

Russia, he said, leads in next-generation nuclear technology, including fast-neutron reactors like the BN-800 and upcoming BN-1200.

“Russia remains the only country with complete expertise across the entire nuclear fuel cycle,” Sechin stated.

Sechin voiced strong reservations about the “net zero” movement, warning of the risks of a rushed green transition.

He cited Nobel laureate Pyotr Kapitsa to argue that fossil fuels and nuclear energy offer far greater energy density than solar or wind.

“Europe’s reliance on renewables has driven electricity prices to five times those in the U.S.,” Sechin claimed, blaming energy policy missteps in the EU.

The forum’s speakers broadly supported Sechin’s analysis. Rosneft Chairman Al-Sada highlighted the continued dominance of fossil fuels —still accounting for 80 per cent of global energy use — despite the push for renewables.

Zhang Daowei of CNPC emphasized a blended approach to energy sourcing, while Mantiri of Pertamina stressed natural gas as a pillar of Indonesia’s strategy. Reliance’s Prasad outlined India’s multi-pronged energy innovation efforts, aimed at improving access and resilience.

Uzbekistan’s Mirzamakhmudov confirmed that the country is pursuing nuclear development in partnership with Russia. Delcy Rodríguez reiterated Venezuela’s commitment to energy security, and Nobuo Tanaka, of Japan’s Low Carbon Technology Initiative, called for pragmatic, diversified energy solutions.

The panel concluded with praise for Rosneft’s technological advancements. David Gadzhimirzaev, CEO of TOFS Oilfield Services, noted that digital innovation would be essential for future energy stability.