Last week the International Energy Agency (IEA) released a report outlining how to achieve a zero-emission energy system by 2050. The report, among other things, calls for an immediate end to fossil fuel investment and does not forecast sales of passenger car internal combustion engines by 2035. Two knowledgeable oil and gas market observers offered their views on the IEA report on Rigzone.
Texans for Natural Gas (TNG), an education campaign conducted by the Texas Independent Producers and Royal Owners Association (TIPRO), conducted its own assessment of the IEA’s “zero net route” and claims the report confirms that the world continues to depend. on oil and gas.
“In particular, the report outlined an extreme scenario for global oil and gas producers, which did not include new investments in fossil fuel supply projects,” Ed Longanecker, president of TIPRO, said in a written statement sent to Rigzone. “As anti-fossil fuel rumors continue to emphasize the recommendation, they failed to take a closer look at the report, which as a whole underlines the continuing role that oil and gas must play every lie day of global population, even under IEA Net-zero path ”.
In its interpretation of the IEA report, TNG argues that:
The IEA document emphasizes the importance of oil and gas for the world’s energy future rather than predicting the end of fossil fuels.
“In their report, the IEA is reinventing its role in the world economy,” Longanecker said. “Even in the IEA scenario of reaching zero net by 2050, fossil fuels will continue to be a key part of the energy mix, accounting for about one-fifth of global energy supply. Not the change The fundamental decline in the energy mix will be the decline in oil and natural gas, but the sharp rise in renewable energy.The IEA notes that fossil fuels, in its zero net scenario, will also continue to be used in commodities essential, such as making plastics, in facilities with carbon capture technology “.
Methane emissions from the fossil fuel supply will fall by 75% over the next decade with the IEA’s net zero path.
“Oil and gas producers are already on their way to achieving this ambitious goal by continually investing, adapting and innovating to tackle methane emissions across all operations,” Longanecker said, adding that the efforts already paying dividends. “According to the latest World Bank Flame Tracking Report from the World Bank, flares in the United States dropped 32% between 2019 and 2020. In one of the world’s most prolific production basins, the Permian, methane emission intensity has decreased 77% between 2011 and 2019. ”
Direct air capture and storage represents one of the major innovation opportunities to reach net zero by 2050.
“Oil and gas producers … are some of the world’s leading investors in carbon capture and storage (CCS) technology,” Longanecker noted. “ExxonMobil (NYSE: XOM) alone has invested $ 3 billion in low carbon efforts focusing on CCS. Operators continue to undertake ambitious CCS projects: for example, in March, Houston’s liquefied natural gas (LNG) developer, NextDecade (NASDAQ: NEXT) announced the formation of its subsidiary NEXT Carbon Solutions, a CCS-related project Rio Grande LNG. works aimed at reducing emissions from the LNG terminal by more than 90% “.
Natural gas will help put an end to global energy poverty, a problem that the IEA report identifies as an important goal to be achieved by 2030.
“The IEA writes that” providing energy to approximately 785 million people who do not have clean cooking solutions and access to 2.6 billion people who do not have such options is an integral part of our journey, “Longanecker said. Natural gas will play a vital role in providing the fuel needed for cooking and electricity to the hundreds of millions who currently suffer without them. ”
Natural gas is needed to reduce emissions quickly.
“For many countries, the transition from coal to natural gas would lead to a dramatic reduction in carbon emissions,” Longanecker noted. “American LNG exports provide an abundant supply of easily transportable energy worldwide. “For example, China has become one of the largest importers of LNG in the world as it aims to transform millions of homes and production plants from coal to natural gas. Thanks in large part to natural gas, China – referred to. ‘ often as the largest greenhouse gas emitter in the world – has made significant progress in reducing carbon intensity. ”