Economic dependence on oil contradicts climate crisis agenda for fossil

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Burgeoning climate crisis have resulted in aggressive goals sketched by multiple governments, restricting the use of fossil fuel and finding more sustainable means of energy.

The climate crisis agenda dictates complete end to oil in forthcoming years, a plan appealing and equally challenging to achieve, considering how deeply petroleum affects the world’s economic status.

Romain Ioualalen from Oil Change International, cited several developments throughout 2021, which indicated strong possibility for the petroleum industry to become obsolete.

Critical warnings by the International Energy Agency (IEA) necessitated immediate stop to any new investments in fossil projects in order to achieve worldwide net-zero carbon emissions by 2050, offering some hope of restricting warming to 1.5C.

Reportedly, this marks as a revolutionary move of an agency that was originally established in 1970 amidst first oil shock to safeguard the energy security of powerful, oil-consuming nations.

Further, 2021 also witnessed emergence of a cohort of nations during the COP 26 climate summit held in Glasgow, which vowed to outright abandon oil and gas production. However, none of the oil and gas production giants followed the initiative.

Loualalen noted that unlike earlier, its isn’t taboo to talk about hydrocarbon extraction at international climate summits.

Very recently, when oil giant Shell announced exit from the development of the notoriously popular Cambo oil field off Scotland, reasoning it as an unsatisfactory investment case.

Moez Ajmi, an energy specialist, mentioned while the end of crude oil is not very far-fetched, the world’s survival without oil remains uncertain as a result of larger dependency on oil.

Moreover, IEA anticipates a surge in oil prices hoping for pre-pandemic levels of below 100 million barrels per day.

Oil producers worldwide are leveraging the recovery in crude prices to pursue new projects and infuse cash. Additionally, U.S. oil majors such as ExxonMobil and Chevron also came forth with investments into energy transition this year.

Source Credits: https://energy.economictimes.indiatimes.com/news/oil-and-gas/climate-crisis-puts-oil-in-the-crosshairs-but-dependence-persists/88513618