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!

Jarand Rystad
CEO, Rystad Energy

Industry View

Global energy spending set to reach record high of over $2 trillion in 2022, led by oil and gas

Surging oil, gas and power prices together with the European Union (EU)’s goals of becoming less dependent on Russian supplies and post-Covid-19 pandemic inflation will catapult global energy spending this year to $2.1 trillion, Rystad Energy research shows.

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Peak revenue: $2.5 trillion in cash to flow from oil and gas sector to government coffers in 2022

Sustained high commodity prices and increasing oil and gas supply are set to push upstream sector payments to governments to an all-time high of $2.5 trillion this year, smashing the previous record of $2.1 trillion set in 2011, Rystad Energy research shows. 

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Carbon capture capacity poised to surge more than 10 times by 2030, but aggressive investment needed to meet mid-century targets

As the energy transition quickens, global carbon capture, utilization and storage (CCUS) projects are on track to pull more than 550 million tonnes of CO₂ out of the atmosphere every year by 2030, Rystad Energy research shows.  

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Carbon flaring emissions drop to 10-year low, but a rebound may be on the horizon

Gas flaring activity in the global upstream sector sunk last year to its lowest level in a decade due to improved productivity, increased environmental awareness and lower fuel demand caused by Covid-19 lockdowns and travel restrictions, Rystad Energy research shows.

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Offshore wind capacity additions in Europe to break records in 2022, driven by UK developments

New offshore wind capacity additions in Europe are poised to hit a record high this year, topping 4 gigawatts for the first time and more than doubling additions seen in 2021. 

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Europe’s ban on Russian coal is a double-edged sword that will keep power prices high

The European Union’s decision to ban imports of coal from Russia will affect up to 70% of Europe’s thermal coal imports, Rystad Energy research shows.  

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From a big bang to a steady stream: SPR release to provide only temporary relief for consumers

The Biden Administration’s decision to go for a “big bang” release of strategic petroleum reserves (SPR) has successfully decreased oil prices, for now.  

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