Although fossil fuels are being replaced by clean energy they are not going away. Even coal is not in decline, it’s just peaked globally: declining in mature economies, still rising in developing ones. Henning Gloystein at the Eurasia Group, writing for the Atlantic Council, asks to what extent oil will follow coal. Oil consumption is still growing – 1% this year - though at a much slower rate than before. As with coal, a re-focus onto cleaner … [Read more...]
IEA: Big energy firms cannot ignore the Transition
Alessandro Blasi and Alberto Toril of the IEA look at how oil and gas majors are still investing very little - of the order of a single percentage point - in clean energy projects. What they are doing in response to new anti-fossil climate policies is increasing investment in short cycle projects that generate cash and returns quickly, minimising risk. This is a questionable strategy, given the fundamental shift away from thermal power and fossil … [Read more...]
UK fracking earthquakes: why the world’s “toughest” safety rules failed to predict them
In August this year Lancashire experienced the largest fracking-induced earthquake recorded in the UK. Fracking was suspended. Legislators discussed a complete ban. As a result, serious questions are being asked about the effectiveness of the safety regulations, given the operating company, Cuadrilla, predicted there was a “low-likelihood” of such events occurring. And given the UK’s “traffic light system” (TLS) is the most stringent TLS in the … [Read more...]
IEA: Global energy investment stabilises at $1.8tn after 3 years of decline
Three consecutive years of declining global energy investment has ended. But it’s not risen, just stabilised at $1.8tn, according to the IEA’s latest report World Energy Investment 2019. To meet the Paris targets investment in efficiency needs to rise substantially, and double by 2030 for renewables: they have stalled for both. To meet soaring global energy demand oil and gas investments need to rise too. That demand is seeing cheap coal still … [Read more...]
A grassroots fightback against Trump and U.S. Oil & Gas is underway
As the 116th Congress commences, in the wake of dire reports from climate scientists, the debate over U.S. climate policies has taken a welcome turn towards bold solutions. Capitol Hill is alive once again with policy proposals that edge towards the scale required to address the crisis we’re in. A new study by Kelly Trout of Oil Change International, along with 17 partner organisations, makes it clear that managing a rapid and equitable decline … [Read more...]
Low oil price alongside rise in renewables sees Oil & Gas slide to bottom of S&P 500
In December we reported that in 2018, the U.S. became the world's leading oil producer for the first time since the 1970s. It is tipped to produce 12 million barrels of oil per day this year (up approximately 10% year on year), and over two-thirds of it will come from shale producers. But the consequent squeeze on the oil price meant U.S. Oil & Gas firms ended the second year in a row at the bottom of the stock market. IEEFA’s director of … [Read more...]
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