Action to achieve Paris climate goals will upend oil and gas markets
Apr 16, 2021 10:30:am
Summary
by: Wood Mackenzie
Action to achieve Paris climate goals will upend oil and gas markets
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.