The Crude Oil Case: Why is the World Still Addicted to Oil Despite Better Options?

The promise made at the 2023 COP28 climate summit to move away from fossil fuels has raised hopes that the world will now turn in another direction. Some even considered it the beginning of the end for the use of oil as fuel.

However, even years later, the promise seems far from fulfilled. Despite strong scientific agreement that global warming is real and is driven largely by the burning of fossil fuels, the transition has barely progressed.

The conflict in the Middle East has highlighted how dependent the world is on oil. As Iran tightens its grip on the Strait of Hormuz, global energy supplies and the broader economy are under pressure. While some believe that such conflicts should push countries to reduce their dependence on fossil fuels, current trends indicate that this goal remains elusive. Despite the availability of alternatives such as clean energy sources such as solar and thermal energy, they still depend on fossil fuels.So why, even after knowing the impact and consequences of using fossil fuels and the necessity of moving away from them, does the world keep returning to them?

Moving away from fossil fuels – why is it so difficult?

One of the biggest obstacles to stopping oil is the economy itself.

Global markets are exposed to oil prices, which reflects how deeply interconnected fossil fuels are in financial systems.“We cannot achieve transformation by shutting down fossil fuel companies overnight, because that would be an unprecedented economic catastrophe around the world,” Claudio Angelo, international policy coordinator at the Brazilian Climate Observatory, told AFP. Moreover, many countries such as Iraq, Kuwait, and Saudi Arabia depend almost entirely on oil revenues.

Angelo warned that even countries with more diversified economies, such as Brazil, could see serious economic damage if crude oil exports are cut.But what stops countries with sufficient resources? Politics is another major factor. Countries like the United States, Canada and Australia have the resources to move toward clean energy, said Bill Hare, director of climate analytics.“For these countries, I think it’s a matter of political will,” he told AFP.However, as Trump returns to power and other right-wing leaders gain more ground globally, economic interests are once again taking precedence over climate concerns. Some leaders even questioned whether climate change exists.“There is a whole vision of the West, led by the United States, to return to the model that has already been tried,” said Leonardo Stanley, a research associate at the Center for the Study of State and Society in Buenos Aires.The influence of the oil and gas industry is also seen as a major obstacle.“The oil and gas sector is the most powerful lobby on Earth,” said Angelo of the Climate Observatory.“For 30 years, they have been using time to delay changes,” he added.An AFP investigation in 2023 concluded that consultancy McKinsey, which works with companies such as ExxonMobil and Saudi Aramco, had defended its interests during discussions leading up to the UN Climate Change Conference (COP28).Money is another sticking point. Moving away from oil will require strong financial support, both for rich oil-producing countries and for countries that rely heavily on imports.“But to start this process, there must be some willingness from the major economic powers and the medium and large economic powers to actually reach an international system that facilitates this,” Hare said.Despite slow progress, there are some signs of change. In 2025, renewable energy will account for nearly half of the world’s electricity capacity, according to the International Renewable Energy Agency, an all-time high.China has rapidly expanded its wind and solar production in the past year, even as it remains the world’s biggest emitter of greenhouse gases. In Pakistan, solar energy has grown from a secondary source in 2020 to one of the country’s major energy sources.Hare also noted that in some parts of the United States and Australia, the rise of renewable energy has helped lower electricity bills, demonstrating some of the benefits of the transition already underway.