Global and Green Energy Consumption and Supply

Anyone who believes we can quickly move from fossil fuels to renewable energy is very confused. The following five slides provided by Canoe Financial dispel any illusion of a quick transition to green energy and gives a perspective on all forms of energy and their supply to the global demand.

As much as we would like to believe the world is transitioning quickly to alternative energy, it isn’t, simply because of the supply demand imbalance.

The world has too many people with too little and they need basic services like electricity. 

Youth is a key driver in the ever-increasing demand for energy from emerging economies.

The reality is that energy transitions take far longer to happen than we hope.

There are four hurdles most alternative energy options can’t compete with compared to oil and gas

·       Storage

·       Transportation

·       Cost of alternative energy, it will take time to bring costs down

·       Degree of heat produced

Alternative energy will overcome these challenges but not overnight. As much as we would like to flip a switch and convert to greener energy, it is an expensive and time-consuming process.

For a comprehensive review on the energy sector please refer to this report by JP Morgan.

Miles Clyne