Page 15 - NorthAmOil Week 09 2023
P. 15

NorthAmOil                              ENERGY TRANSITION                                        NorthAmOil




































       WoodMackenzie: Lack of low-emission, low-




       cost oil and gas puts energy transition at risk





        GLOBAL           THE energy transition will require oil and  basins, and exploration on this scale over the
                         gas for several decades, Wood Mackenzie has  next two decades will add oil and gas supply of
                         said in a report, but the supply of low-cost and  around 10-15mn barrels of oil equivalent per day
                         low-carbon “advantaged” resources is limited.  (boepd) by 2050.
                         The analysis shows that the total discovered   Decarbonisation technologies and biofuels
                         and prospective oil and gas resources are more  could play an even bigger role in meeting the
                         than double the projected demand for 2050.  demand for low-carbon energy sources. Bio-
                         However, truly advantaged resources, with low  based diesel and aviation fuels produced from
                         breakeven and emissions, are scarce. The global  plant-based feedstock could emit up to 80% less
                         energy industry will have to face the challenge of  carbon than crude oil-based products.
                         managing the demand for energy and reducing   Despite these potential solutions, Wood   Even under the
                         its carbon footprint.                Mackenzie highlights the fact that advantaged
                           According to Wood Mackenzie, most devel-  resources alone will find it difficult to meet all   most ambitious
                         oped fields have little to offer, and only 28%  ETO (Energy Transition Outlook) oil and gas
                         of the resources in commercial undeveloped  demand. Some companies may decide to double   targets of
                         fields, roughly 49bn barrels of oil equivalent,  down on their current strategies, hoping for less
                         are advantaged in terms of breakeven below  competition in the sector. However, many com-  the Paris
                         $30 per barrel with emissions intensity of less  panies may begin or accelerate their exit from   Agreement some
                         than 20 kg of CO2 equivalent per boe. Wood  the sector to pursue low-carbon energies and
                         Mackenzie’s data reveals that only enough  renewables. If this is the case, the security of sup-  disadvantaged
                         advantaged resources are available to meet  ply may become threatened, and unfortunately,
                         about half of the base-case oil and gas demand  companies may resort to using disadvantaged   supply will be
                         forecast to 2050.                    resources to meet demand.
                           Even under the most ambitious targets of   In conclusion, the energy industry will have   necessary.
                         the Paris Agreement some disadvantaged sup-  to find ways to manage the demand for energy
                         ply will be necessary, meaning that companies  and reduce its carbon footprint. The transition
                         will have to pivot to new strategies to meet the  to low-carbon energies will require a mix of
                         demand for oil and gas. Exploration could play  solutions, including exploration, decarbonisa-
                         a vital role in locating and increasing this sup-  tion technologies and biofuels. While there are
                         ply, as Wood Mackenzie found that high-impact  significant challenges ahead, the industry has
                         exploration could contribute around 5-10bn  the potential to meet the demand for energy
                         boe of new advantaged barrels per year. This  and achieve the most ambitious targets of the
                         new supply will be found within energy super  Paris Agreement.™



       Week 09   02•March•2023                  www. NEWSBASE .com                                             P15
   10   11   12   13   14   15   16   17   18   19   20