Carbon matters: Fossil fuels and the Energy Transition

Rapid technological advances across a variety of industries are enabling society’s quest for sustainability. The resulting “Energy Transition” is causing an unprecedented shift in how the world’s population consumes energy and natural resources, driven by a range of factors including decarbonisation, economics, access to energy, societal expectations around environment and climate, energy efficiency, political and regulatory forces and emerging technologies. The “Energy Transition” will occur at different speeds and shapes in different geographies, depending on local economic and societal pressures. World energy demand is continuing to rise, mainly in the emerging economies of India, China and Africa, driven by population growth and economic development. Many countries are trying to do the “right thing” for their population and their economy and are not necessarily driven by a desire to “save the planet”. Maximising income to fund important social and education programmes is often higher in the priorities of some governments than reducing carbon emissions. The energy transition is not as simple as doing what’s right for the planet. Governments, businesses and people in fossil fuel producing regions have shown that they will protect their economies despite the threat of environmental harm. The fossil fuel era will not be over soon. Despite the rapid growth in the use of renewable energy resources, in all reasonable scenarios there will still be a need for oil, gas and coal for the foreseeable future if we are to meet the social and economic expectations of the world’s growing population. The energy mix will certainly change as we try to reduce carbon emissions, but the speed and magnitude of that change will depend heavily on national economic priorities, political will and public opinion. The world’s need for sustainable energy will change the geography of the oil and gas industry, increasingly intertwining it with renewables and carbon sequestration. The oil and gas industry of the 2030s, and beyond, will focus where synergies with renewable energy, carbon sequestration and, increasingly, industrial complexes, are strongest. Providing sufficient affordable and sustainable energy while mitigating the effects of climate change are now the world’s greatest challenges. They are complex issues and are no simple solutions. It is important to remember in any discussion about the energy transition that it is not the energy source that is the problem, it’s the env