Baker Hughes’ CEO Warns Of Three Hard Truths About The Energy Transition | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Baker Hughes’ CEO Warns Of Three Hard Truths About The Energy Transition

Fossil fuels are here to stay. This is the message one oilfield major CEO had for those watching the surge of gas prices in Europe, some with trepidation, others with fascination. They are here to stay because they help ensure a country's energy security. "We think there's three hard truths," Simonelli told CNBC in an interview this week. "Firstly, we've got to work together, accelerate the move towards decarbonization and also eliminating emissions. Secondly, hydrocarbons are here to stay … and natural gas, in fact, is a key element. And thirdly, we've got to do it together, collaborate and actually adopt the new technologies that are available."

Some would say the current energy crisis in Europe is sufficient proof that there is something not quite right with the way the EU and the UK approached the energy transition. OPEC's secretary-general Mohamed Barkindo, for instance, told CNBC there was a new premium emerging in energy markets that he called "the transition premium." What this means is, essentially, that the energy transition is making energy more expensive despite promises for affordability.

Others, however, are careful to not blame anything related to the energy transition of renewables. The International Energy Agency earlier this week mentioned "several weather-related factors" among the reasons for the gas price spike in Europe. "These include a particularly cold and long heating season in Europe last winter, and lower-than-usual availability of wind energy in recent weeks," the agency said.