Demand for energy on a global scale is set to increase substantially in the coming years, as this article points out. So-called activists need to activate their brains a bit more. Unless they hope to suppress demand permanently in some ultra-draconian manner, the current system has to continue unless or until something better takes its place, which won’t be any time soon as demand now exceeds 100 million barrels per day.
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Europe may be in the grips of an energy shortage and forced to reopen retired coal plants to cope but climate activists insist that it is time to part company with fossil fuels, the sooner, the better says OilPrice.com.
According to them, this is a simple solution to the world’s emission problems. “It is overflowing with too much carbon. The world can’t absorb any more,” said Tom Goldtooth, an activist and the executive director of the North American Indigenous Environmental Network on the sidelines of COP26, as quoted by CNBC. “The simple solution, that we are still demanding, is the world has to turn the valve off.”
Yet the solution of turning off the valve appears to not be as simple as it may sound. Goldtooth is neither the first nor the last activist to call for an immediate end to oil and gas production.
Earlier this year, following the release of the latest report of the Intergovernmental Panel on Climate Change, the very head of the UN, Antonio Guterres slammed oil and gas.
“This report must sound a death knell for coal and fossil fuels before they destroy our planet,” he said, adding “Countries should also end all new fossil fuel exploration and production, and shift fossil fuel subsidies into renewable energy.”
Also earlier this year, the International Energy Agency published a roadmap to net zero, in which it called for the end of all new oil and gas exploration. Only a few months later, the IEA called on OPEC to boost new oil and gas exploration in order to ensure an adequate supply of hydrocarbons amid fast-growing demand.
The IEA’s contradictory stances are a perfect illustration of how challenging the “simple solution” of turning the oil taps off is in reality.
Shell’s chief executive put it succinctly in comments on the historic court ruling that obliged the supermajor to cut its carbon footprint substantially.
“Imagine Shell decided to stop selling petrol and diesel today,” Ben van Beurden wrote in a LinkedIn post. “This would certainly cut Shell’s carbon emissions. But it would not help the world one bit. Demand for fuel would not change. People would fill up their cars and delivery trucks at other service stations.”
It is the demand side of the hydrocarbon equation that climate activists regularly appear to choose to overlook, focused with laser precision on the production side.
When the pandemic started last year, many, including BP, claimed we are already past peak oil demand. As lockdowns eased, however, reality reasserted itself and it turned out that demand for oil has not, in fact, peaked at all.
Now, investment banks, the International Energy Agency, and the U.S. Energy Information Administration are all forecasting greater demand still next year.
Full article here.
via Tallbloke’s Talkshop
December 31, 2021 at 09:09AM