Jamie Dimon says Ukraine war shows we still need cheap, secure energy from oil and gas

One key lesson of the previous yr is that the world shouldn’t be prepared to maneuver away from oil and fuel because the dominant supply of gas, in keeping with JPMorgan Chase CEO Jamie Dimon.

The financial institution chief mentioned on CNBC’s “Squawk Field” on Tuesday that the continuing conflict in Europe highlighted that fossil fuels are nonetheless a key element of the worldwide financial system and would stay so for the foreseeable future.

“If the lesson was realized from Ukraine, we want low-cost, dependable, secure, safe power, of which 80% comes from oil and fuel. And that quantity’s going to be very excessive for 10 or 20 years,” Dimon mentioned.

Russia’s invasion of Ukraine earlier this yr despatched commodity costs hovering, together with oil and pure fuel. U.S. oil benchmark West Texas Intermediate crude traded above $100 per barrel for a lot of the spring and summer season, although it has since eased again towards pre-war ranges.

The rising worth of pure fuel has been a selected ache level in Europe, which beforehand relied on closely on Russian fuel for dwelling heating.

Dimon mentioned that world leaders whereas pursuing renewable options must concentrate on an “all the above” power technique to take care of gas for economies and scale back carbon emissions, not neglecting oil and fuel manufacturing within the close to time period.

“Larger oil and fuel costs are resulting in extra CO2. Having it cheaper has the advantage of lowering CO2, as a result of all that is occurring all over the world is that poorer nations and richer nations are turning again on their coal vegetation,” Dimon mentioned.

The JPMorgan chief had beforehand declined a pledge to cease doing enterprise with fossil fuels, saying in a Congressional listening to that the transfer could be a “street to hell for America.”