Goldman Sachs’ Jeff Currie: ‘$3.8 Trillion of Investment in Renewables Moved Fossil Fuels from 82% to 81% of Overall Energy Consumption’ in 10 Years

Climate Depot By Marc Morano | Oct. 21, 2022


CNBC’s JOE KERNEN: “OPEC’s back in charge because we haven’t invested in alternatives. That’s all Europe did, was invest in new age alternatives.”

JEFF CURRIE (an economist and Global Head of Commodities Research in the Global Investment Research Division at Goldman Sachs.): “No, because we didn’t —“

KERNEN: “Are you saying natural gas and nuclear and coal are alternatives, or do you mean pie in the sky, wind —“ [crosstalk]

CURRIE: “Alternative to OPEC production —“

KERNEN: “Fossil fuel alternatives to —“ [crosstalk]

CURRIE: “— whether it’s gas, oil, solar, wind, you name it. But in fact —“

KERNEN: “Nuclear, coal, all — and of the above. It just sounded like you were saying — sounded like you were saying we haven’t transitioned quick enough to the green stuff, and that’s not what — what you were saying —“ [crosstalk]

CURRIE: “But — but — but let’s — but let’s look at how much did the greens investment give us? Here’s a stat for you, as of January of this year. At the end of last year, overall, fossil fuels represented 81 percent of overall energy consumption. Ten years ago, they were at 82. So though, all of that investment in renewables, you’re talking about 3.8 trillion, let me repeat that $3.8 trillion of investment in renewables moved fossil fuel consumption from 82 to 81 percent, of the overall energy consumption. But you know, given the recent events and what’s happened with the loss of gas and replacing it with coal, that number is likely above 82. So when we think about what those renewables have added — because remember, you’re adding capacity, but the capacity utilization factor is quite low on them. And then you have Europe making the investment in there, but China making further investments. The net of it is clearly we haven’t made any progress. And I think the key point that I was saying is that why OPEC is in the driver’s seat, you know, at an unprecedented level is because, you know, we inclusively of everybody outside of OPEC have not adequately invested in overall energy production, infrastructure and the ability to supply and deliver it. And I don’t care — and by the way, the countries like Brazil, you know, was [indecipherable] about who’s going to be exposed to this because they raise interest rates really early in the cycle. They’re actually less exposed to what’s happening right now than let’s say Japan or Europe.”