The leaders of the global oil and gas sector have acknowledged the need for an energy transition, but they have also expressed concerns about the complexity and difficulty of the shift. During the World Petroleum Congress in Calgary, industry leaders highlighted the risk of underestimating the challenges in transforming existing energy systems to meet tougher climate action demands from governments and the public.
Some participants at the congress disagreed with projections, including those from the International Energy Agency (IEA), that predict oil demand will peak in the coming years. The main focus of the discussions revolved around meeting rising energy demand while decarbonizing oil and gas production. Exxon Mobil CEO Darren Woods emphasized the challenge of replacing the current energy system due to its widespread availability and transportability.
The congress, known as the “Olympics of the oil and gas industry,” is expected to host over 4,000 delegates from around the world. With global oil consumption reaching a record 102 million barrels per day, and demand projected to increase, the industry faces significant pressure to address the environmental concerns associated with its operations.
Public anger over rising energy costs, as well as the dire effects of climate change, have further heightened the urgency for action. More than 80 countries, including Canada, have committed to achieving net-zero emissions by 2050. However, the oil and gas sector remains vital for meeting current energy demands.
It is evident that transitioning to cleaner energy sources will be a gradual process, rather than an instantaneous switch. The industry acknowledges the need for a comprehensive transition plan that balances energy demands and environmental sustainability.
Sources:
– Original article source: Calgary Herald
– International Energy Agency (IEA) projections