In a recent report by the International Energy Agency (IEA), the necessity for a significant overhaul in the oil and gas sector has been underscored, given its substantial contribution to global warming. The report emphasizes the need for current investment in the oil and gas sector to be halved from $800 billion a year. Greenhouse gas emissions, it insists, must decrease by 60% to meet global climate goals.
This pivotal report was released in anticipation of the United Nations climate conference, COP28. The involvement of oil and gas companies in such meetings has often been a point of contention and criticism. The IEA’s report, however, suggests that oil and gas companies can find alternative sources of revenue in the clean energy economy. It proposed opportunities in hydrogen and hydrogen-based fuels, and carbon capture technologies as potential areas of growth and investment.
The IEA report further suggests that if all climate pledges are fulfilled, the demand for oil and gas will be 45% lower than today’s level by 2050. If net zero emissions are achieved by then, demand would decrease by a staggering 75%.
The oil and gas sector, being a major emitter of greenhouse gases, is in dire need of a substantial overhaul to mitigate the worsening effects of climate change. This is a recurring theme in the IEA report and a crucial point of discussion for the upcoming United Nations climate conference, COP28.
Last year’s climate conference saw the participation of 400 attendees linked with the fossil fuel industry, a fact that did not go unnoticed. Further, the appointment of the Abu Dhabi National Oil Company’s chief as president for the upcoming meeting has drawn further criticism.
The IEA’s report serves as a stark reminder of the urgent need for the oil and gas industry to transition to cleaner energy. As the world grapples with the escalating impacts of climate change, the transition is not just about business survival, but the survival of our planet. The upcoming UN meeting should serve as a platform to drive this urgent need for change and ensure the oil and gas industry is part of the solution and not the problem.
Science4Data is committed to cut through greenwashing and measure real impact. Join the journey to a sustainable future. Your actions matter.
