The energy transition will drill oil and gas

22 May 20213 years ago babelfish

Any energy transition scenario involves a drop in oil demand, according to Wood Mackenzie. The article by Alessandro Sperandio for Energia Oltre

The energy transition is putting up to $ 14 trillion in oil and gas assets at risk. The estimate comes from Wood Mackenzie, cited by Reuters , in the latest catastrophic scenario for the energy industry.

IN THE SHORT TERM GOOD OUTLOOK FOR OIL AND GAS

In the short term, the future looks good for oil and gas, according to the consultancy. The demand for oil and gas will return to pre-pandemic levels and even exceed them, reaching 160 million barrels of oil equivalent per day.

Add to that the fact that oil and gas companies are getting even leaner and nastier, and this year they will be able to generate as much cash flow at $ 60 a barrel as they could when crude oil was $ 100. to the Brent barrel seven years ago, Wood Mac analysts explained.

IN THE LONG TERM PERSPECTIVES MORE HAPPY

Over the long term, however, things are starting to look different, with each energy transition scenario involving a drop in oil demand.

In the most optimistic scenario, global demand for gas and oil would slowly and gradually decrease, reaching 90 million barrels per day in 2050. In this case, investments in new production would see prices rise above 80 dollars per barrel by 2030. .

However, if the world decides to pursue the scenario of containing warming by 2 degrees, oil demand could drop to 35 million barrels a day by 2050, with demand growth peaking by 2025. That would mean Brent prices of $ 40 per barrel on average in 2030 and lower thereafter, according to the Wood Mac report.

Even in the most ambitious scenario, "the world will still need oil and gas supplies for decades to come, and the size of the sector will remain enormous," according to Wood Mackenzie Vice President Fraser McKay .

THE REPORT COMES AFTER THE REQUEST FOR AIE TO STOP INVESTMENTS IN HYDROCARBONS

The report comes just a day after the International Energy Agency called on the energy industry to stop investing in new oil production right now, so the world can achieve its Paris Agreement goals. 2050.

Article published by EnergiaOltre, here the full version.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/la-transizione-energetica-trivella-petrolio-e-gas/ on Sat, 22 May 2021 05:16:58 +0000.