The International Energy Agency (IEA) has shifted its stance and is now advocating for a faster transition from fossil fuels to clean energy. Despite the surge in clean energy investment, reaching US$2 trillion last year and surpassing investment in fossil fuels for the first time, IEA’s executive director, Fatih Birol, predicts a significant oversupply of fossil fuel production in the next decade.
In response, major oil companies, including Opec, have defended the importance of oil for global prosperity. While investments in the clean energy transition have reached US$9.5 trillion since 2000, wind, solar, and electric vehicles still account for a small percentage of the energy mix.
ExxonMobil projects a stable demand for oil and gas above 100 million barrels per day post-2030 but highlights the necessity of ongoing investments. On the other hand, BP’s Energy Outlook warns that current emission reduction efforts fall short of the targets required to limit global warming to 1.5 degrees.
The debate on the future of oil and gas intensifies with contrasting views on carbon capture technology. With limited success in commercial projects, the industry’s reliance on this mechanism is questioned, raising concerns about meeting emission reduction goals.
As discussions around the future of energy intensify, the upcoming UN climate conference is poised to be a battleground for differing opinions and interests.
David Dodwell, CEO of Strategic Access, analyzes the evolving landscape of the Asia-Pacific region.