scholarly journals International Oil Companies’ Low-Carbon Strategies: Confronting the Challenges and Opportunities of Global Energy Transition

2019 ◽  
Vol 237 ◽  
pp. 042038 ◽  
Author(s):  
Yun Peng ◽  
Jia Li ◽  
JieXin Yi
Keyword(s):  
Energy Transition ◽  
Low Carbon ◽  
Global Energy ◽  
Oil Companies ◽  
Challenges And Opportunities

scholarly journals The rise of renewables and energy transition: what adaptation strategy exists for oil companies and oil-exporting countries?

2019 ◽  
Vol 3 (1-2) ◽  
pp. 45-58 ◽  
Author(s):  
Bassam Fattouh ◽  
Rahmatallah Poudineh ◽  
Rob West
Keyword(s):  
Oil And Gas ◽  
Energy Transition ◽  
Energy System ◽  
Adaptation Strategy ◽  
Future Market ◽  
Low Carbon ◽  
Global Energy ◽  
Oil Companies ◽  
Main Challenge ◽  
Long Run

Abstract The energy landscape is changing rapidly with far-reaching implications for the global energy industry and actors, including oil companies and oil-exporting countries. These rapid changes introduce multidimensional uncertainty, the most important of which is the speed of the transition. While the transformation of the energy system is rapid in certain regions of the world, such as Europe, the speed of the global energy transition remains highly uncertain. It is also difficult to define the end game (which technology will win and what the final energy mix will be), as the outcome of transition is likely to vary across regions. In this context, oil companies are facing a strategic dilemma: attempt the risky transition to low-carbon technologies by moving beyond their core business or just focus on maximising their return from their hydrocarbon assets. We argue that, due to the high uncertainty, oil companies need to develop strategies that are likely to be successful under a wide set of possible future market conditions. Furthermore, the designed strategies need to be flexible and evolve quickly in response to anticipated changes in the market. For oil-exporting countries, there is no trade-off involved in renewable deployment as such investments can liberate oil and gas for export markets, improving the economics of domestic renewables projects. In the long run, however, the main challenge for many oil countries is economic and income diversification as this represents the ultimate safeguard against the energy transition. Whether or not these countries succeed in their goal of achieving a diversified economy and revenue base has implications for investment in the oil sector and oil prices and consequently for the speed of the global energy transition.

What Color Is Your Hydrogen?

2021 ◽  
Vol 73 (05) ◽  
pp. 32-35
Author(s):  
Judy Feder
Keyword(s):  
Energy Demand ◽  
Energy Transition ◽  
Environmental Research ◽  
Low Carbon ◽  
Short Term ◽  
Global Energy ◽  
Oil Companies ◽  
Net Zero ◽  
The Cost

Is green H2 better than blue? Is gray going away? As the world transitions from “black gold” to greener alternatives, many questions are being raised about hydrogen (H2) and its role in the current and future energy mix. H2 was among the “hot topics” during the 2021 CERAWeek by IHS Markit held virtually in March. The global energy research firm estimated that hydrogen currently costs $200 to $250/bbl to produce—as much as five times the cost to produce a barrel of oil. Low-carbon hydrogen has a tiny share of the global energy market today, but investors are betting on its long-term potential, according to Wood Mackenzie, who said shares with meaningful exposure to hydrogen have been among the best-performing of energy transition stocks in the past few months. By 2050, low-carbon hydrogen will constitute 7% of global energy demand—211 Mt—from practically zero today. For this and other reasons, many oil companies are researching and investing in hydrogen projects. IHS Markit believes that energy companies will invest $5 billion to $10 billion in hydrogen of various colors over the next 5 years, helping to develop breakthrough technologies that will reduce its cost and increase its competitiveness, not only with renewables such as wind and solar, but eventually with oil and natural gas. Paul Browning, president and chief executive officer of Mitsubishi Power Americas, said, “What’s really driving green hydrogen is net zero, from regulators to shareholders. There is no way to get to net zero without long-term storage, and for that, we need hydrogen,” he said. “Green H2 will be used as storage first. Then its cost will decline enough to make it a fuel.” But green won’t be the only player. Blue and green are at the basis of different perspectives of a potential hydrogen society, according to a paper recently published in an environmental research journal Sustainability. Blue hydrogen, integrated with carbon capture and storage, can provide the scale and reliability needed by industrial processes. It can also play an essential role in decarbonizing hard-to-electrify industries and driving down the cost of the energy transition. And it can represent a useful option in the short and medium term by helping pave the way for green hydrogen at a later stage (Fig. 1). Armin Schnettler, executive vice president of new energy business for Siemens Energy, said at CERAWeek, “Short-term color isn’t important. What is important is a hydrogen economy, dedicated to green H2. In the short term, we should be ready to support all colors.” Moving From Talk to Action Hydrogen’s potential role in national and international decarbonization strategies is growing for sectors ranging from industry to transport. Already used as a feedstock in industrial applications, it is now being proposed as a potential energy carrier to support wider deployment of low-carbon energy.

scholarly journals Why the energy transition is not enough

2021 ◽  
Author(s):  
Benjamin Leiva ◽  
John Schramski
Keyword(s):  
Energy Consumption ◽  
Fundamental Problem ◽  
Energy Transition ◽  
Low Carbon ◽  
Global Energy ◽  
Energy Mix ◽  
Show Evidence ◽  
Kleiber’S Law ◽  
Low Carbon Energy ◽  
Global Energy Consumption

Abstract Efforts to accommodate the growth in global energy consumption within a fragile biosphere are primarily focused on managing the transition towards a low-carbon energy mix. We show evidence that a more fundamental problem exists through a scaling relation, akin to Kleiber’s Law, between society’s energy consumption and material stocks. Humanity’s energy consumption scales at 0.78 of its material stocks, which implies predictable environmental pressure regardless of the energy mix. If true, future global energy scenarios imply vast amounts of materials and corresponding environmental degradation, which have not been adequately acknowledged. Thus, limits to energy consumption are needed regardless of the energy mix to stabilize human intervention in the biosphere.

scholarly journals The Role of Green and Blue Hydrogen in the Energy Transition—A Technological and Geopolitical Perspective

2020 ◽  
Vol 13 (1) ◽  
pp. 298
Author(s):  
Michel Noussan ◽  
Pier Paolo Raimondi ◽  
Rossana Scita ◽  
Manfred Hafner
Keyword(s):  
Hydrogen Generation ◽  
Energy Transition ◽  
Energy System ◽  
Low Carbon ◽  
International Consensus ◽  
Additional Energy ◽  
Challenges And Opportunities ◽  
Hydrogen Supply ◽  
Zero Carbon ◽  
Generation Costs

Hydrogen is currently enjoying a renewed and widespread momentum in many national and international climate strategies. This review paper is focused on analysing the challenges and opportunities that are related to green and blue hydrogen, which are at the basis of different perspectives of a potential hydrogen society. While many governments and private companies are putting significant resources on the development of hydrogen technologies, there still remains a high number of unsolved issues, including technical challenges, economic and geopolitical implications. The hydrogen supply chain includes a large number of steps, resulting in additional energy losses, and while much focus is put on hydrogen generation costs, its transport and storage should not be neglected. A low-carbon hydrogen economy offers promising opportunities not only to fight climate change, but also to enhance energy security and develop local industries in many countries. However, to face the huge challenges of a transition towards a zero-carbon energy system, all available technologies should be allowed to contribute based on measurable indicators, which require a strong international consensus based on transparent standards and targets.

scholarly journals Prospects for the Development of the Russian Rare-Earth Metal Industry in View of the Global Energy Transition—A Review

Energies ◽  
2022 ◽  
Vol 15 (1) ◽  
pp. 387
Author(s):  
Alexey Cherepovitsyn ◽  
Victoria Solovyova
Keyword(s):  
Rare Earth ◽  
Rare Earth Metal ◽  
Oil And Gas ◽  
Earth Metal ◽  
Energy Transition ◽  
Metal Industry ◽  
Low Carbon ◽  
Green Technologies ◽  
Global Energy ◽  
Current Trends

Global energy transition trends are reflected not only in oil and gas market dynamics, but also in the development of related sectors. They influence the demand for various types of metals and minerals. It is well-known that clean technologies require far more metals than their counterparts relying on fossil fuels. Nowadays, rare-earth metals (REMs) have become part and parcel of green technologies as they are widely used in wind turbine generators, motors for electric vehicles, and permanent magnet generators, and there are no materials to substitute them. Consequently, growth in demand for this group of metals can be projected in the near future. The topic discussed is particularly relevant for Russia. On the one hand, current trends associated with the global energy transition affect the country’s economy, which largely depends on hydrocarbon exports. On the other hand, Russia possesses huge REM reserves, which may take the country on a low-carbon development path. However, they are not being exploited. The aim of this study is to investigate the prospects for the development of Russia’s rare-earth metal industry in view of the global energy transition. The study is based on an extensive list of references. The methods applied include content analysis, strategic management methods and instruments, as well as planning and forecasting. The article presents a comprehensive analysis of the global energy sector’s development, identifies the relationship between the REM market and modern green technologies, and elaborates the conceptual framework for the development of the REM industry in the context of the latest global tendencies. It also contains a critical analysis of the current trends in the Russian energy sector and the plans to develop the industry of green technologies, forecasts future trends in metal consumption within based on existing plans, and makes conclusions on future prospects for the development of the REM industry in Russia.

scholarly journals Global Oil & Gas Corporations in the Race for Technological Superiority

2021 ◽  
Vol 65 (5) ◽  
pp. 59-67
Author(s):  
A. Bereznoi
Keyword(s):  
Research University ◽  
Oil And Gas ◽  
Energy Transition ◽  
Basic Research ◽  
Oil And Gas Industry ◽  
Service Firms ◽  
Low Carbon ◽  
Gas Industry ◽  
Oil Companies ◽  
The World

Received 16.12.2020. The article explores the key trends in R&D and innovation activities of the world’s largest oil&gas companies through the lens of dynamic shifts taking place in the competitive landscape of the global energy sector. The first area, where the author sees significant changes, relates to the appearance of the new powerful players in the technological domain of the world oil and gas industry. He draws attention to the growing roles of national oil companies and multinational oilfield service firms as increasingly important investors in R&D and innovations. These developments are analyzed in the context of the overall competitive positioning of Western-based supermajors whose technological dominance in the industry has never seriously been challenged before. Another significant change, noticed by the author, relates to the new technological priorities set by the world’s largest oil&gas companies for the foreseeable future. Two major sets of technologies are becoming increasingly important as strategic areas for investment by the industry giants. One of them, low-carbon technologies, reflects the dramatic evolution of the “Big Oil” attitude to the Energy transition. In contrast to a largely negativist (or at best ‘window-dressing’) approach to climate agenda, visible just a decade ago, most oil&gas giants have recently adopted individual low-carbon strategies driven to a large extent by the significantly increased pressure from the powerful institutional investors and the growing influence of the negative public opinion. The second top technological priority relates to the changing digital agenda in the oil and gas industry. It reflects the transition of the industry leaders to the next generation digital technologies (including internet of things, artificial intelligence, machine learning and robotics) but most importantly to a systemic approach in digital transformation contrasting with traditional “piecemeal” IT projects with limited operations coverage. The changing innovation management mechanisms are also considered by the author as one of the key trends in technological domain of the world oil and gas industry. Specific focus is devoted to the formation of the corporate innovation ecosystems, including various R&D and innovation collaborations with different innovation actors (business partners, professional research centers, universities and governments organizations) and the connected vast spread of open innovation-based instruments working within these alliances. Acknowledgements. The article was prepared within the framework of the Basic Research Program at the National Research University Higher School of Economics.

scholarly journals Why the energy transition is not enough

2020 ◽  
Author(s):  
Benjamin Leiva ◽  
John Schramski
Keyword(s):  
Energy Consumption ◽  
Fundamental Problem ◽  
Energy Transition ◽  
Low Carbon ◽  
Global Energy ◽  
Energy Mix ◽  
Show Evidence ◽  
Kleiber’S Law ◽  
Low Carbon Energy ◽  
Global Energy Consumption

Abstract Efforts to accommodate the growth in global energy consumption within a fragile biosphere are primarily focused on managing the transition towards a low-carbon energy mix. We show evidence that a more fundamental problem exists through a scaling relation, akin to Kleiber’s Law, between society’s energy consumption and material stocks. Humanity’s energy consumption scales at 0.78 of its material stocks, which implies predictable environmental pressure regardless of the energy mix. If true, future global energy scenarios imply vast amounts of materials and corresponding environmental degradation, which have not been previously acknowledged. Given this reality, we also show evidence that a worldwide lifestyle limit at 2.0 kW/capita enables a dignified life for all while stabilizing human intervention in the biosphere to current levels, yet the political viability of establishing such limit is very low.

Determinants and barriers of PV self-consumption in Spain from the perception of the installers for the promotion of distributed energy systems

2020 ◽  
pp. 153-169
Author(s):  
José Ángel Gimeno ◽  
Eva Llera Sastresa ◽  
Sabina Scarpellini
Keyword(s):  
European Union ◽  
Energy Transition ◽  
Legal Framework ◽  
Low Carbon ◽  
The European Union ◽  
Distributed Energy ◽  
Sustainable Solutions ◽  
Highly Sensitive ◽  
Transition Scenario

Currently, self-consumption and distributed energy facilities are considered as viable and sustainable solutions in the energy transition scenario within the European Union. In a low carbon society, the exploitation of renewables for self-consumption is closely tied to the energy market at the territorial level, in search of a compromise between competitiveness and the sustainable exploitation of resources. Investments in these facilities are highly sensitive to the existence of favourable conditions at the territorial level, and the energy policies adopted in the European Union have contributed positively to the distributed renewables development and the reduction of their costs in the last decade. However, the number of the installed facilities is uneven in the European Countries and those factors that are more determinant for the investments in self-consumption are still under investigation. In this scenario, this paper presents the main results obtained through the analysis of the determinants in self-consumption investments from a case study in Spain, where the penetration of this type of facilities is being less relevant than in other countries. As a novelty of this study, the main influential drivers and barriers in self-consumption are classified and analysed from the installers' perspective. On the basis of the information obtained from the installers involved in the installation of these facilities, incentives and barriers are analysed within the existing legal framework and the potential specific lines of the promotion for the effective deployment of self-consumption in an energy transition scenario.

scholarly journals Design of a Smart Nanogrid for Increasing Energy Efficiency of Buildings

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3683
Author(s):  
Yerasimos Yerasimou ◽  
Marios Kynigos ◽  
Venizelos Efthymiou ◽  
George E. Georghiou
Keyword(s):  
Storage System ◽  
Energy Transition ◽  
Energy Storage System ◽  
Low Carbon ◽  
Pv System ◽  
Interconnected System ◽  
Low Carbon Economy ◽  
Energy Needs ◽  
Energy Domain ◽  
Battery Energy

Distributed generation (DG) systems are growing in number, diversifying in driving technologies and providing substantial energy quantities in covering the energy needs of the interconnected system in an optimal way. This evolution of technologies is a response to the needs of the energy transition to a low carbon economy. A nanogrid is dependent on local resources through appropriate DG, confined within the boundaries of an energy domain not exceeding 100 kW of power. It can be a single building that is equipped with a local electricity generation to fulfil the building’s load consumption requirements, it is electrically interconnected with the external power system and it can optionally be equipped with a storage system. It is, however, mandatory that a nanogrid is equipped with a controller for optimisation of the production/consumption curves. This study presents design consideretions for nanogrids and the design of a nanogrid system consisting of a 40 kWp photovoltaic (PV) system and a 50 kWh battery energy storage system (BESS) managed via a central converter able to perform demand-side management (DSM). The implementation of the nanogrid aims at reducing the CO2 footprint of the confined domain and increase its self-sufficiency.

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