In order to prevent even more extreme weather events driven by human-caused climate change, the oil and gas industry, one of the main emitters of gases that warm the globe, will need to undergo a swift and significant transformation, according to research released on Thursday.
The International Energy Agency stated that in order to give the world a fighting chance to meet its climate goals, the current $800 billion annual investment in the oil and gas sector would need to be cut in half, and greenhouse emissions—which come from the burning of fossil fuels like oil—would need to drop by 60%. A number of effects, including extreme weather occurrences are caused by greenhouse gases rising into the atmosphere and heating the earth.
The United Nations climate conference, often known as COP28, is starting next week, and the IEA study comes right before it. Climate experts and environmentalists take issue with oil and gas firms’ frequent attendance at the gathering, as well as other individuals and groups associated with fossil fuels. On the other hand, some argue that the industry should be included in the conversation about moving towards greener energy.
In a press release following the publication of the research, Fatih Birol, executive director of the IEA, stated, “The oil and gas industry is facing a moment of truth at COP28 in Dubai.” “Oil and gas producers must decide carefully what role they want to play in the world energy market going forward.”
400 representatives of the fossil fuel industry attended the climate conference in Egypt last year. The fact that the president of the talks would be the chief of the Abu Dhabi National Oil Company has also drawn criticism for the impending gathering.
Over two-thirds of greenhouse gas emissions linked to human activity come from the energy sector, with oil and gas accounting for roughly half of those emissions, according to the IEA. Over 60% of methane emissions, which trap around 87 times more heat than carbon dioxide over a 20-year period, are also the fault of oil and gas corporations.
The paper stated that oil and gas businesses may generate more money through the clean energy economy by utilizing hydrogen and hydrogen-based fuels, as well as carbon capture technologies. At the moment, there is no large-scale testing for carbon capture, which removes carbon dioxide from the atmosphere, or clean hydrogen, which is produced from renewable electricity.
The paper examined international climate pledges and a scenario in which global emissions were expected to reach net zero by 2050. It concluded that by 2050, the world’s need for gas and oil will have decreased by 45% from its current level if all nations fulfill their climate obligations. It stated that demand would have decreased by 75% if the globe reached net zero by then.
The global demand for coal, gas, and oil is expected to peak by the end of this decade, according to a different IEA estimate published earlier this year.
The demand for oil and gas is “bound to decline,” according to Vibhuti Garg, an energy economist with the Institute for Energy Economics and Financial Analysis located in New Delhi.
“Countries will start using those options and reduce their reliance on these expensive fuels,” the spokesperson added. “There are cheaper, cleaner alternatives.”
