The Energy Transition Marathon
The world has suffered two energy crises in as many years, first with a once-in-a-century global pandemic that dramatically cut demand, and then by the Russian invasion of Ukraine that has caused prices to rebound to their highest level since 2014.
The twin crises have whiplashed the global economy, lifted geopolitical risks, exposed dependencies, and shuffled priorities. In the short term, developed economies remain reliant on petrostates, while the high cost of fossil fuels has made renewables more competitive than ever. Yet, even in the renewables sector we have seen volatility in energy metal prices and issues with supply chains. The high cost of energy for consumers – from big industry to households – is a key and immediate issue. As are the findings in a UN science report published earlier this month, including a stark warning that we are currently heading for a warmer climate.
In our view, all of this generates strengthened momentum for the energy transition. It will require significant efforts on many fronts, and it will not be a short sprint. Amid this backdrop, Rystad Energy will host an energy transition marathon on 3 May where we will provide a comprehensive review the global energy mix and potential directions, broken down by sector and geography. We will explore long term market outlooks and the viability of new technologies, as well as presenting deep dives into specific energy segments and industries.
Changing the global energy mix to be net zero is by no means a simple task or a quick fix, particularly in the current context. It is easy to forget the remarkable progress that has been made to date but changing the world economy from today’s $100 trillion market that is 80% fueled by fossil fuels to a net zero $160 trillion world economy in just 28 years is an extremely tall order. Quality data, actionable insights and sound advice will be critical to accelerating the energy transition – join us on 3 May for more!