The oil and gas sector is the most powerful lobby on Earth. Over the past 30 years, it has been working to resist changes, according to a network of NGOs.
The conflict in the Middle East and its impact on the global economy and energy security serves as a stark reminder of the planet’s dependence on hydrocarbons. However, in 2023, when the international community committed to transitioning away from fossil fuels to combat climate change, some believed it marked the beginning of the end for oil.
Is it more reason to completely eliminate oil, the most greenhouse gas-emitting energy source? Despite numerous calls to do so, the promise made in Dubai during COP28, the UN climate conference, seems to no longer be on the agenda. Some are more blunt about this than others. For example, US President Donald Trump expressed his views through his campaign slogan, “Drill, baby, drill,” and further confirmed this with military interventions in two oil-rich countries, Venezuela and Iran.
In this context, more than 50 nations will participate next week in Colombia in an unprecedented meeting on the gradual phase-out of fossil fuels.
Economic Stakes
“If oil companies were to suddenly close their doors, it would be a planetary economic disaster of unprecedented proportions. Giant banks like HSBC would go bankrupt,” said Claudio Angelo, Coordinator of International Policy at the Brazilian NGO Climate Observatory.
Financial markets are highly sensitive to oil price fluctuations because oil-related assets remain indispensable. Economies like Saudi Arabia, Kuwait, or Iraq are almost entirely dependent on hydrocarbons. Other economies, like Colombia, rely heavily on these revenues. President Gustavo Petro is seeking debt relief for the country to fulfill his promise of no longer signing new oil exploration contracts.
Lack of Political Will
Major oil-exporting powers like the United States, Canada, and Australia have the means to successfully undergo their energy transition, according to Bill Hare, Director of Climate Analytics. He emphasizes that it is a matter of political will.
However, geopolitical and economic tensions have overshadowed the fight against climate change in recent years. Some governments, starting with the Trump administration, openly display their climate change skepticism.
Powerful Lobby
“The oil and gas sector is the most powerful lobby on Earth,” states Claudio Angelo, noting their 30-year effort to resist change.
For example, a 2023 investigation by AFP revealed that consulting firm McKinsey had lobbied behind the scenes for the interests of its oil clients, from American company ExxonMobil to Saudi giant Aramco, during COP28 preparations.
Who Foots the Bill?
To move away from oil and transition their economy, countries reliant on these resources and poor countries need significant financial support. Bill Hare explains that creating an international system to facilitate this transition requires goodwill from major economic powers, which has been lacking so far.
Record
Despite challenges, progress has been made. In 2025, renewable energies accounted for nearly 50% of global electricity capacity, a record according to the Irena. China, the top global emitter of greenhouse gases, has significantly increased its wind and solar capacities. In Pakistan, solar energy has become a major source of electricity. The growth of renewables in regions of Australia and the US has lowered electricity costs.
Context: The article discusses the powerful influence of the oil and gas lobby, the impact of the Middle East conflict on the global economy, political resistance to phasing out fossil fuels, and the challenges and progress in transitioning to renewable energy sources.
Fact Check: The information provided in the article regarding the influence of the oil and gas lobby, global economic dependence on oil, and the need for financial support in transitioning to renewable energy aligns with widely recognized challenges in the energy sector and climate policies.
