A Greater Demand for Energy
Over the past couple of years, one subject has been gaining increasing prominence among discussion topics at O&G industry meetings: the energy transition.
Along with increasing population comes greater demand for energy and the higher quality of life it brings, but at the same time there is a strong shift towards a low carbon future.
Solving this dilemma is something that the exploration industry needs to be part of.
Renewable Energy & Lower CO2 Emissions
Renewables are scaling up fast. According to SolarPower Europe, preliminary global solar installations reached 98.9GW in 2017, a 29.3% increase over the previous year, while module costs are forecast to drop by 40% by 2020. Similar reductions in costs and increase in uptake have been seen in wind power and other renewables. However, as discussed in our Global Resource Management column, this cannot supply anything like the energy we will require; all the forecasts point to a need for hydrocarbons for some time to come. But, as Bob Dudley of BP said recently, “To deliver significantly lower emissions, every type of energy needs to be cleaner and better. A race to renewables will not be enough.”
“To deliver significantly lower emissions, every type of energy needs to be cleaner and better. A race to renewables will not be enough.”
Bob Dudley, BP.
Collaborating in Oil & Gas for a Brighter Future
Companies from across the energy sector – whether hydrocarbon-based, traditional nonfossil fuel energy providers like hydroelectric, or the fast-growing new renewables – need to be involved in pushing forward the agenda of a sustainable low carbon energy future. The energy transition has now been understood, and in many cases embraced, by the energy establishment. Data and digitalization have meant that traditional models of business are changing, and multiple business sectors are now working together – take the example of the heavy oil fields in Oman where solar energy is providing the steam required for steam-assisted gravity drainage, as we describe in this issue. Competitors can become collaborators in the move towards transition and convergence in the energy industry.
The Energy Transition
The energy transition is a chance for companies in the oil and gas industry to look at the opportunities that their technologies and expertise offer, embrace change and ensure they are part of the future.