Page 5 - AfrElec Week 10 2021

AfrElec COMMENTARY AfrElec

next decade. economy that we’re all working toward”.
“Hydrocarbons are still going to be essential And a number of other speakers expressed
for providing energy to the world, especially in similar sentiments.
the near term,” Baker Hughes’ CEO, Lorenzo
Simonelli, said. What next?
Indeed, the International Energy Agency Some of these concepts, including that of gas
(IEA) estimates that producers will need to as a bridge fuel, are nothing new and have been
invest $500-600bn per year in new oil and gas discussed at CERAWeek and other conferences
projects in order to keep up with global demand. for some years. Other topics of discussion have
evolved. Certainly, the issue of post-pandemic
Brighter outlook recovery and the changes that will come in the
The outlook is brighter for natural gas, which wake of coronavirus (COVID-19) is a new area
was touted by many as being a transition fuel of focus.
that has a potentially longer lifespan than oil. Additionally, the dialogue appears to be
Indeed, van Beurden said that Shell will continue increasingly shifting from simply discussing the
to invest in gas even as it moves away from oil, importance of reducing emissions to discussions
adding that he believed gas would outlive oil for of the practical steps involved and how chal-
at least a decade. lenges can be overcome.
Others – particularly prominent LNG players With more and more companies pursuing
– echoed these expectations. their own decarbonisation targets, there will be
“When we look at LNG and natural gas, we more to talk about in practical terms, based on
think it’s a perfect complement to renewables,” their experience.
US LNG producer Cheniere Energy’s president And while some oil and gas companies will
and CEO, Jack Fusco, said. “I think everybody be resistant to the idea of decarbonisation, the
will agree that natural gas is a key component of energy transition increasingly appears to be
a cleaner energy environment.” unstoppable. As the CERAWeek speakers sought
Chevron’s Wirth also said his company was to point out, however, there are considerable
“bullish on natural gas” and saw LNG as hav- challenges ahead.
ing “a very important role in the lower-carbon ™

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