Action to achieve Paris climate goals will upend oil and gas prices
If the world acts decisively to limit global warming to 2°C by 2050, the scale of change will revolutionise the energy industry.
Progressive electrification will squeeze the most polluting hydrocarbons out of the energy mix, nearly eliminating their markets. Oil demand will shrink, and with it, so will the power of major oil producers.
Gas demand will remain resilient, but business models will need to evolve.
Ann-Louise Hittle, vice president, Macro Oils, at global natural resources consultancy Wood Mackenzie, said: “Our Accelerated Energy Transition Scenario – AET-2 – gives an indication of how energy demand, supply and pricing will change if policy and technology are rapidly deployed to cut greenhouse gas emissions in line with the Paris Agreement.
Action to Achieve Paris Climate Goals Will Cause the Sun to Set on Oil and Gas Markets
“If we move to keep global warming to the 2°C limit set by the Paris Agreement, the energy matrix will change – and change profoundly.” Image credit: Dabarti CGI/Shutterstock
If the world acts decisively to limit global warming to 2°C by 2050, the scale of change will revolutionise the energy industry.
Progressive electrification will squeeze the most polluting hydrocarbons out of the energy mix, nearly eliminating their markets.
Oil demand will shrink, and with it, so will the power of major oil producers.
Gas demand will remain resilient, but business models will need to evolve.
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Build or buy: are the copper Majors rising to the growth challenge?
Demand for copper already on a rising trend is arguably set to explode as the energy transition takes hold. In order to prevent structural deficits, unsustainably high prices and demand destruction, miners will have to invest ever-increasing sums of money in supply. In the last article in this series I highlighted the scale of the challenge ahead. Now I’ll look a little closer and ask: are the copper Majors doing enough to address the issue? And who are the likely winners and losers in the growth race?