Oil and gas still key to energy transition, says Energy Industries Council
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- 3 min read
Published on: Wednesday, July 01, 2026
By: Samantha Sulit
Kota Kinabalu: The global energy transition is entering a more pragmatic phase, with oil and gas continuing to play a critical role in meeting rising energy demand while ensuring energy security and affordability, according to Energy Industries Council (EIC) Asia Pacific Regional Director Ts Syed Saggaf Syed Ahmad.
He said the global conversation on decarbonisation has evolved beyond the assumption that renewable energy can rapidly replace conventional fuels.
“Instead, recent global investment trends indicate that countries are increasingly balancing climate ambitions with the need for reliable and affordable energy.
“Oil and gas remain a major part of global energy investment,” he said at the Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE).
Syed Saggaf said hydrocarbons continue to attract substantial investment, particularly in regions where energy security, liquefied natural gas (LNG) exports and growing domestic demand remain strategic priorities.
Drawing on EIC’s global project database, which tracks more than 17,000 energy projects valued at an estimated US$17 trillion, he said investment patterns show governments and industry are prioritising practical energy solutions rather than relying on a single technology.
He cited natural gas as one of the clearest examples, describing it as a key transition fuel.
“Gas has become the key bridge fuel,” he said, noting that LNG infrastructure, gas-fired power generation and supporting gas networks are expanding as countries seek flexible electricity systems capable of complementing renewable energy.
He stressed that the energy transition should not be viewed as a simple replacement of fossil fuels with renewables.
Instead, he said energy systems that have evolved over decades require equally long-term investment in infrastructure, technology, regulation and financing to ensure a stable transition.
“The challenge before us is not choosing between security, affordability or sustainability. It is finding practical pathways to achieve all three simultaneously while meeting the growing energy needs of our societies,” he said.
Syed Saggaf said this balancing act — commonly referred to as the “energy trilemma” — has become increasingly important amid geopolitical tensions, supply chain disruptions and rising electricity demand driven by industrialisation, electrification and the rapid expansion of data centres.
While renewable energy projects continue to expand globally, he noted that many markets are now constrained not by generation capacity but by ageing transmission infrastructure, insufficient substations and limited grid connectivity.
As a result, investment is increasingly flowing into energy storage, grid modernisation and gas infrastructure to strengthen system reliability.
He also challenged the perception that oil and gas companies risk becoming obsolete during the energy transition, arguing that the industry’s engineering expertise, project management capabilities, manufacturing capacity and operational experience position it to become a major contributor to emerging energy sectors, including hydrogen, carbon capture and storage (CCS), renewable energy and energy storage.
“The energy transition should therefore not be viewed as a replacement of one industry by another,” he said.
Rather, he described it as an opportunity for oil and gas companies to diversify their portfolios while leveraging decades of technical expertise to accelerate new energy developments.
Looking ahead, Syed Saggaf said the Asia-Pacific region is increasingly shaping the global energy landscape as investment opportunities continue to expand across both conventional and low-carbon energy sectors.
“The future of energy will not be defined by a single fuel, a single technology or a single solution. It will be defined by diversity,” he said.
He added that companies embracing multiple energy pathways, rather than focusing exclusively on one technology, will be best positioned to succeed as the region navigates an increasingly complex and competitive energy landscape.
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