Page 6 - NorthAmOil Week 09 2021

NorthAmOil COMMENTARY NorthAmOil

Fossil fuels’ future

role in the spotlight

The future role of fossil fuels in a decarbonising

world was being examined at the CERAWeek by

IHS Markit conference this week

GLOBAL THE future of fossil fuels was up for debate as
the CERAWeek by IHS Markit conference was
WHAT: hosted virtually this week for the first time. The
The future role of fossil event normally takes place in Houston, and was
fuels was being examined cancelled last year as the coronavirus (COVID-
at CERAWeek this week. 19) spread globally, having been set to take place
at the same time that the outbreak was declared
WHY: to be a pandemic in March 2020.
The energy transition Much has therefore changed since the last
is picking up pace, and CERAWeek took place, in 2019. Not only is
there is some debate the world trying to overcome the pandemic –
over the role oil and gas with post-pandemic recovery a major topic at CERAWeek was held
will play. this year’s conference – but there is also a new “There just isn’t yet enough renewable energy virtually this year.
US President with different priorities as far as to fuel all of the energy that people need. That’s
WHAT NEXT: energy goes. in developed countries,” Amazon Web Services’
Some players appear US President Joe Biden wasted no time in tak- CEO, Andy Jassy, who will succeed Jeff Bezos as
set to make a more ing steps to show that tackling climate change CEO of the entire company this summer, told
concerted shift away from would be one of his major goals, in marked the conference.
fossil fuels than others. contrast with his predecessor, Donald Trump, Jassy said his company had announced its
whose priorities were US energy independence goal for net-zero emissions at a time when it had
– and indeed energy dominance. not entirely figured out how to achieve this tar-
Changing geopolitics were discussed by get – which can also be said of other companies
panels and individual speakers, with various and countries adopting similar goals.
challenges outlined. However, US Special Pres- And if there cannot be enough renewable
idential Envoy for Climate John Kerry said on energy to meet all demand, that brings fossil
the second day of the event that he believed the fuels back into play, at least for a number of years
US could compartmentalise its geopolitical ten- to come.
sions with China to work together climate plans
aimed at limiting global temperature increases. Piece of the puzzle
Some differences of opinion emerged at this
Centre stage year’s CERAWeek about what sort of future oil
This was one of numerous discussions about the and gas will have in this context. Some, such
energy transition and combating climate change as the CEOs of BP and Royal Dutch Shell,
– topics which took centre stage during this talked up their efforts to move away from oil
year’s CERAWeek, having been gaining promi- and gas.
nence in recent years. “We’ve been an oil and gas company for 112
In 2021, though, after so many countries, years, and I think this is a moment where we
companies and regions have adopted decar- do have to reinvent the company,” BP’s CEO,
bonisation targets since the last CERAWeek Bernard Looney, said. “We decided to really
was held, it was seen as more important than embrace that energy transition, more as a mas-
ever. However, even as they acknowledged the sive opportunity and not look at it as some sort
importance of decarbonisation, many speakers of threat to our core business.”
stressed that the path to net zero greenhouse Shell’s CEO, Ben van Beurden, for his part,
gas (GHG) emissions would be a difficult one, said he believed his company’s oil output had
and maintained that there would be a need for peaked in 2019 and that targeting custom-
investment in fossil fuels for years to come. ers seeking to reduce their own emissions

P6 www. NEWSBASE .com Week 09 04•March•2021