The oil and gas sector, one of the largest emitters of greenhouse gases, will need a rapid and substantial overhaul if the world is to avoid even worse extreme weather events fueled by human-caused climate change, according to a report released Thursday.
The current investment of $800 billion per year in the oil and gas sector will have to be cut in half and greenhouse gas emissions, which result from the burning of fossil fuels like oil, will have to fall by 60% to give the world a fighting chance. to achieve its climate goals, the International Energy Agency said. Greenhouse gases rise into the atmosphere and warm the planet, leading to several impacts, including extreme weather events.
The IEA report comes just ahead of the United Nations climate conference, or COP28, which begins next week. Oil and gas companies, as well as other people and organizations linked to fossil fuels, often attend the meeting, drawing criticism from environmentalists and climate experts. But others say the industry needs to be at the table to discuss how to transition to cleaner energy.
“The oil and gas industry faces a moment of truth at COP28 in Dubai,” said Fatih Birol, executive director of the IEA, in a press release to mark the release of the report. “Oil and gas producers must make profound decisions about their future place in the global energy sector.”
Last year’s climate conference in Egypt saw 400 people linked to fossil fuel industries attend the event, according to an Associated Press analysis. The upcoming meeting was also criticized for appointing the head of Abu Dhabi’s national oil company as chairman of the talks.
The energy sector is responsible for more than two-thirds of all greenhouse gas emissions linked to human activity, and oil and gas are responsible for about half of those, according to the ‘OUCH. Oil and gas companies are also responsible for more than 60% of emissions of methane, a gas that traps about 87 times more heat than carbon dioxide over a 20-year period.
Oil and gas companies can find alternative revenue through the clean energy economy, including hydrogen and hydrogen-based fuels and carbon capture technologies, the report said. Clean hydrogen – made from renewable electricity – and carbon capture – which removes carbon dioxide from the atmosphere – have not currently been tested on a large scale.
The report examines climate pledges made by countries as well as a scenario in which the world reaches net zero emissions by 2050. It found that if countries meet all of their climate pledges, demand for oil and gas will be 45% lower than current levels by 2050. 2050. If the world reaches net zero emissions by then, demand will fall by 75%, according to the report.
Earlier this year, another IEA report found that global demand for oil, gas and coal will likely peak by the end of this decade.
Vibhuti Garg, a New Delhi-based energy analyst at the Institute of Energy Economics and Financial Analysis, said the need for oil and gas is “destined to decline.”
“There are cheaper and cleaner alternatives, so countries will start using these options and reduce their dependence on these expensive fuels,” she said.
