The first day of CERAWeek by S&P Global in Houston has already sparked outrage as US Secretary of Energy Chris Wright announced a reversal of Biden-era renewable energy policies. The move, alongside oil and gas giants reaffirming their commitment to hydrocarbons at what was meant to be a forum for clean energy discussions, has drawn sharp criticism and protest.
Protests in Houston
Demonstrations erupted outside the George R. Brown Convention Center, where the conference is being held. Hundreds of climate activists marched from Root Memorial Square Park, carrying banners demanding clean air and water.
Houston police arrested eight protesters who had formed a human chain to block a nearby street. Among them was prominent activist Yvette Arellano, who shouted, “Human rights for my people!” as she was detained.
Beyond protesting pro-fossil fuel announcements, activists also expressed anger over being barred from attending the conference despite raising funds to purchase entry passes. In previous years, environmentalists have been excluded under the pretext of security concerns. In 2023, S&P Global, which organises the event, blocked a different environmental campaigner from attending but has not responded to inquiries regarding this year’s exclusions.
Arellano captured the frustration of many activists:
“Our government refuses to fund schools but pours billions into fossil fuel and petrochemical projects. We demand justice. CERAWeek operates behind closed doors, shutting out civil society from the conversations that will determine our future.”
Such criticism is particularly pointed given that global climate summits like COP28 and COP29 were praised for their inclusivity. In contrast, CERAWeek appears to be moving in the opposite direction.
Shell’s LNG Strategy Amid the Shift
While the US is rolling back climate policies, Shell CEO Wael Sawan doubled down on the company’s commitment to liquefied natural gas (LNG). Addressing CERAWeek, Sawan emphasised that natural gas remains a critical energy source for emerging markets, particularly in South Asia, where energy demand is soaring.
According to the Gas Exporting Countries Forum, natural gas is projected to grow from 9% of South Asia’s energy mix in 2022 to 13% by 2050. LNG is being used to supplement renewables and reduce coal dependency.
By 2050, LNG imports are expected to hit 42 million tonnes (Mt) in Bangladesh and 31 Mt in Pakistan, with India’s imports projected to quadruple from 22 Mt in 2023 to 105 Mt. Shell, a dominant player in these markets, has been expanding its LNG portfolio, especially after exiting Russia in 2022. The company has since increased its supply capabilities through projects in the UAE and Trinidad and Tobago, reinforcing its stake in Asia’s growing energy profile.
Sawan’s stance aligns with global energy realities, but it starkly contrasts with Wright’s approach, which prioritises domestic fossil fuel expansion over international energy security.
A Pragmatic Energy Future? UAE’s Perspective
Adding another dimension to the debate, His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, stressed the need for a balanced, pragmatic energy policy.
Speaking at CERAWeek, Dr. Al Jaber called for durable and stable policies to support growing energy demand, stating:
“The world is finally waking up to the fact that energy is the solution. Energy is the beating heart of economies, a key driver of prosperity and is fundamental to every aspect of human development.”
He highlighted the need for an ‘and-and’ approach—embracing diverse energy sources rather than choosing between renewables and fossil fuels.
“We know that by 2035, there will be almost 9 billion people on this planet. In line with this growth, oil demand will increase from 103 to at least 109 million barrels per day. LNG and chemicals will expand by over 40%, and total electricity demand will surge by 70%.”
The UAE has been at the forefront of this integrated approach, investing in 51GW of renewable energy through Masdar while maintaining its leadership in low-carbon oil and gas production. Dr. Al Jaber pointed to the UAE Consensus at COP28 as a model for bridging climate goals with energy realities, arguing that “sustainable progress is simply not possible without access to reliable, affordable, and secure energy.”
The AI-Energy Connection
Dr. Al Jaber also tied the future of energy to artificial intelligence, noting that AI applications like ChatGPT require ten times the energy of a basic Google search and that AI-driven energy demand is expected to triple in the US alone by 2030.
“The race for AI supremacy is essentially an energy play. Without energy, AI is just potential. With it, AI has the power to reshape the world.”
His remarks signal new investment opportunities, particularly in the energy-AI nexus, where the UAE is positioning itself as a key player through initiatives like XRG, its new international energy investment company.
A New Era for Fossil Fuels?
While US President Donald Trump’s “Drill, baby, drill” rhetoric remains infamous, the US actually became the world’s top shale oil producer during the Biden administration. Drilling continued largely unabated until restrictions were imposed on natural gas expansion. The concern now is that this reversal could encourage other countries to deprioritise their renewable energy projects.
Chris Wright’s announcement of a $44 billion, 800-mile natural gas pipeline from the Arctic Circle to the Alaskan coast underpins the most crucial development of CERAWeek. Environmental groups are expected to mount strong resistance, but with fossil fuel giants emboldened, new LNG projects are being fast-tracked under the Trump administration.
Lorne Stockman, research director at Oil Change International, warned of the global repercussions of the US rollback, telling BBC last month:
“If the US floods markets with cheap fossil fuels or pressures countries to buy its oil, the global energy transition could stall.”
With key players taking differing approaches—Shell doubling down on LNG, the UAE embracing a diversified energy strategy, and the US pivoting towards domestic production—the future of energy appears increasingly fragmented.
As CERAWeek unfolds, all eyes are on COP30 to see whether international cooperation can bridge these growing divides.