© Fadel Gheit
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First of all, it will obviously need huge changes in the economy, with a restructuration in order to achieve this goal. When such a target is set, assumptions need to be made, as it cannot be wishful thinking, but a strategy. It will come gradually and I do believe that there will be a new source of energy like nuclear or wind. Henceforth, all alternative energy will influence fossil fuel, since we all know that it has a negative influence on the environment.
As a matter of fact, we have to remember the Stone Age ended not because we ran out of stone, but because we discovered an alternative to stone and the same situation is in energy business. However, we can never make a forecast for 2050 currently, since it is really hard to predict what will happen in the next 35 years. In general, I agree that ultimately the world is going to move away from fossil fuels in favor of renewable energy sources.
In modern world, where the energy need is rising, fossil fuel substitutions have to be found. Do you think that the mining sector will lose investors' appetite sooner or later? What future do you see for such countries like Saudi Arabia, the World's second largest oil producer?
I believe that Saudi Arabia has enough time to reposition their economy. They have to develop their economy not to be solely dependent on oil exports revenue. If they do not, they will probably become one of the poorest countries in the world, because it is not just a matter of luck, and it should not be taken for granted. Saudi Arabia has been dependent on oil revenue for almost 80 years with continuation for probably 30 years. Therefore, they have to be mentally an economically prepared for the challenge. There will be no more exports revenue, the question is – when?
Do you think that such G- 7 declaration will eventually turn out into a commitment?
It is difficult to say, as the regime and government changes. We do not know whether the G-7 government that represented this group will have the same philosophy in future. Moreover, we can only imagine what competition or conflict it may lead to. It is hard to predict as a lot of these changes will come from government action. For example, we do now know if France or Sweden will change their dependence on nuclear power, and cannot predict if the rest Europe will adopt the same strategy. Indeed, we want to clean the air and environment, however, we have to be aware of safety issues.