Oil & gas still dominate the energy market: How long will fossil fuels' idyll last?
Offshore Energy Today
Offshore Energy - Fossil Energy: Home of Energy Transition ?? Connecting energy security with sustainable solutions ??
The current signs point to several factors that will have a hand in shaping the future energy sector, including further geopolitical hazards alongside multiple fuels and technologies which are expected to be available in abundance if everything goes according to plan and the energy industry continues its push to find ways to increase production from existing assets while pursuing new sources and emerging tech solutions. However, oil and gas will likely remain dominant and primary energy sources not just over the next decade but also up to 2050 and beyond unless extremely aggressive energy policy interventions encircle the globe. Is such an abrupt change in energy policy possible given the divisions and gaps in countries' current policies and opinions on the green shift?
While some, like the International Energy Agency (IEA), claim that geopolitical upheavals are bringing home the need for faster expansion of clean energy, others are convinced these challenges reinforce the necessity of clinging to proven technologies and sources of supply, such as oil and gas alongside LNG, which have earned their stripes and shown they can keep the lights on regardless of the whims of the weather while exploring new energy options. In line with this, Mike Sommers, API - American Petroleum Institute's President and CEO, who recently highlighted the need to secure America’s energy advantage through domestic resources rather than relying on other regions at a time of rising worldwide geopolitical volatility, called for policies that ensure the U.S. could meet "energy needs tomorrow, not just today."
Opponents of fossil fuels cite New InfluenceMap research and similar works to raise the alarm over the oil and gas industry's alleged playbook of narratives and arguments that contradict so-called science-aligned policy, which is employed to "systematically oppose, weaken, and delay" the energy transition since at least 1967 as part of their advocacy repertoire against renewable energy and other clean and low-emission alternatives that threaten to undermine their position. Based on the IEA's recent findings, the natural gas demand is rising at a stronger rate this year than in the previous two due to the turmoil of the global energy crisis but new gas supplies coming to market in 2024 remain limited as a result of the relatively slow growth of LNG production while geopolitical tensions fuel price volatility.
Keisuke Sadamori, IEA's Director of Energy Markets and Security, commented: “The growth we’re seeing in global gas demand this year and next reflects the gradual recovery from a global energy crisis that hit markets hard. But the balance between demand and supply trends is fragile, with clear risks of future volatility. Producers and consumers must work together closely to navigate these uncertain times while taking into account the need to advance clean energy transitions to ensure a secure and sustainable future.”
A report from the International Energy Agency recently predicted that global growth of renewables up to the end of the decade is set to match the entire current power capacity of major economies, paving the way for the world to come closer to its goal of tripling renewables. This aligns with the IEA's 'World Energy Outlook 2024,' which pinpoints critical choices facing governments and consumers as a time of "more ample supplies nears and surging electricity demand reshapes energy security." This report delves into fragilities in the current global energy system, such as geopolitical strains and regional conflicts, which are said to lay bare the necessity for "stronger policies and greater investments to accelerate and expand the transition to cleaner and more secure technologies."
Fatih Birol, IEA Executive Director, remarked: “In the second half of this decade, the prospect of more ample – or even surplus – supplies of oil and natural gas, depending on how geopolitical tensions evolve, would move us into a very different energy world from the one we have experienced in recent years during the global energy crisis. It implies downward pressure on prices, providing some relief for consumers that have been hit hard by price spikes. The breathing space from fuel price pressures can provide policymakers with room to focus on stepping up investments in clean energy transitions and removing inefficient fossil fuel subsidies. This means government policies and consumer choices will have huge consequences for the future of the energy sector and for tackling climate change.”
On the other hand, OPEC’s 'World Oil Outlook (WOO)' from September 2024 underscored the domination of fossil fuels in the global sphere of energy supply up to 2030, when they are expected to represent 77% of the energy mix. The cartel claims that the IEA's 'World Energy Outlook (WEO),' which projects a 75% share for fossil fuels in 2030, a spike from the 73% share previously reported in the WEO 2023, confirms its projections of higher fossil fuels use.
International Energy Agency (IEA) has confirmed the expected shift in energy markets in the coming years. While highlighting that the world could see relatively ample supplies of key fuels and technologies, the IEA also warned about geopolitical risks that are expected to remain. Therefore, it is adamant in its belief that governments and consumers' reactions would have major consequences for energy and climate developments.
The net-zero zest's intensity switches gears with each election and political change, thus, drastic rewritings of the global energy mix are not likely to be on the cards with the current political leaders on the stage, especially not as the world is grappling with geopolitical implications of a potential escalation in the already conflict-ridden Middle East, the treat of a new world order being forged as the fabric of the existing one continues to be eroded.
Even though renewables will continue to eat into the fossil fuels demand developing economies and complex sectors are likely to sustain long-term hydrocarbon use in the foreseeable future.
???????? ???????? ???? ???????????????? ???????????????? ???????????
? Northern Ocean Ltd. is joining forces with Texas-based Kinetic Pressure Control to equip its two rigs with a kinetic blowout stopper (K-BOS) technology, which is said to be designed to put an end to blowouts, serving as “the airbag for the oil & gas industry.”
? Transocean got its hands on a new one-year ultra-deepwater drillship deal in the U.S. Gulf of Mexico, where the rig is currently working for 雪佛龙 .
? Island Drilling Company AS has completed its plug and abandonment assignment with Tullow Oil offshore Mauritania, which was undertaken with its 2012-built semi-submersible rig.
????????? & ?????? ?????????????? ???? ???????????? ???????????????? ???????????? ?????????? ?
? 壳牌 has hired a GEOHIDRA -chartered vessel for geophysical and geotechnical survey work, which is expected to kick off shortly on a gas project, which is anticipated to enable export from a field in Venezuela to the UK-based energy giant’s platform offshore Trinidad and Tobago.
? bp has tapped C-Innovation, LLC , an affiliate of Edison Chouest Offshore (ECO), for subsea construction and inspection, maintenance, and repair (IMR) services in the Gulf of Mexico.
? Hibiscus Petroleum Berhad recently expanded its portfolio by bringing TotalEnergies ' Brunei subsidiary under its fold.
? Gulf Marine Services PLC has expanded its backlog with 25 more months of work, including optional extensions, thanks to a new deal in the European offshore wind sector and the extension of two existing contracts in the Middle East.
? Yinson Production 's FPSO has started its job off the coast of Brazil with Petrobras ahead of schedule.
? Equinor 's safety results for the third quarter of 2024 spotlight a spike in safety alongside a slight jump in injuries towards the end of the quarter.
? Santos Ltd reached the 82% completion milestone at its gas project off the coast of Australia and confirmed the commissioning of a carbon capture and storage project in the Cooper Basin, which is said to be one of the world’s largest and lowest-cost CCS projects.
? Akselos has been tapped by 美国船级社 to deliver software to monitor one of the four FPSOs in the Cess?o Onerosa region of Brazil's pre-salt Santos Basin.
? TGS ' alledged withdrawal from natural gas exploration in Victoria’s Otway Basin offshore Australia is seen as a blow to the state’s energy security due to potential gas supply shortages that are expected in the future if new gas discoveries are not made to replenish dwindling reserves, according to Australian Energy Producers . As TGS has launched the U.S. Gulf Coast CO2 storage assessment, this is perceived to be an essential data package necessary for planning and executing carbon sequestration strategies in the fast-changing energy ecosystem.
? Hengtong Submarine Power Cable , a wholly-owned subsidiary of Hengtong Group , has confirmed a deal to manufacture and construct the submarine fiber optic cable system for a project at one of the world’s largest offshore oil fields, so that, both the existing and future expansion could be facilitated. The field is operated by North Oil Company Qatar , a joint venture between QatarEnergy and TotalEnergies .
? エニ 's revised environment plan for decommissioning operations at a field in the Bonaparte Basin off the coast of Western Australia is under assessment with NOPSEMA .
? TotalEnergies has tapped ADC Energy Ltd. to handle the selection and acceptance of up to three offshore drilling rigs, which will carry out operations at its recently greenlighted oil project offshore Suriname.
? After getting an updated offer for a partial stake in its production-sharing contract (PSC) off the coast of Cameroon, Tower Resources confirmed the ongoing discussions with the undisclosed potential buyer and other interested companies, disclosing expectations of another offer being anticipated to follow suit.
? According to Subsea7 , aramco ’s project at one of the region’s largest oil and gas fields keeps progressing with all float-over installation operations finished using the same method, which the Luxembourg-domiciled player describes as innovative and time-saving.
? Rockhopper Exploration has made arrangements to sell two Italian assets to India’s Zodiac Energy Limited and secure an insurance policy while the resolution of its dispute with Italy continues to run in the background over a third one. The firm also got hold of extensions for its production licenses in the Falkland Islands.
领英推荐
? Saipem is expected to return to the Brazilian oil and gas scene as the ban on new contracts was removed in Brazil, after being put in place to stop the firm from entering into such deals with the country’s public administration due to its affiliates' involvement in irregularities with Petrobras , which allegedly occurred during the execution of a contract to carry out the installation of a subsea gas pipeline in 2011.
? CRC Evans ' work for Westfield Energy Resources Limited on FIRST Exploration & Petroleum Development Company 's two fields offshore Nigeria has been completed. The Scotish firm has secured another assignment with Westfield in India.
? With PaxOcean 's tanker repurposing project now completed, the newly converted FPSO has been delivered to Medco E&P Indonesia . This vessel is anticipated to help boost oil and gas production offshore Indonesia.
? Seascape Energy Asia plc, EnQuest, and Petroleum Sarawak Berhad have expanded their offshore acreage in Malaysian waters with a new block encompassing 12 gas discoveries off the coast of Sarawak.
? Following repairs, the second transformer on TotalEnergies' Tyra II has been lifted onto the processing module. After this giant asset in the North Sea reaches full capacity, it is anticipated to deliver 80% of the forecasted Danish gas production.
? bp's new global frame agreement with SLB’s OneSubsea and Subsea7 is anticipated to enable these players to be at the forefront of coming up with innovative solutions that take the new era of subsea activities to new heights.
? Based on the preliminary indications, Shell's high-impact gas prospect in the UK sector of the North Sea, drilled with a Valaris Limited-owned rig, shows the presence of gas.
???????? ???????????????? ???? ???????????? ???????????? ???????? ???
? GTT (Gaztransport & Technigaz) has won a pair of orders from South Korea's Samsung Heavy Industries and China's Dalian Shipbuilding Industry Company (DSIC), respectively, for tank designs of four new liquefied natural gas carriers.
? Copelouzos Group joined forces with Egyptian Natural Gas Holding Company (EGAS) to transport liquified natural gas through the recently opened floating storage regasification unit (FSRU) terminal in Greece.
? エニ 's FLNG unit off the coast of Mozambique, which currently sends out a shipment of LNG every week and condensate once in two months, recently got a visit from the CEO of the African country's ENH .
?????????????? ???????????????????? ?????????? ???? ?????? ???????? ?????????? ??
? Japan Organization for Metals and Energy Security (JOGMEC), ENEOS , JX Nippon Oil & Gas Exploration , Electric Power Development (J-POWER), and West Japan Carbon Dioxide Storage Survey, a joint venture set up by the three companies in February 2023, have teamed up to handle engineering design requirements for carbon capture and storage project's value chain and exploratory drilling at the planned CO2 storage site.
? Wood has joined hands with multiple companies in a joint industry partnership (JIP) to propel carbon capture, utilization, and storage (CCUS) projects forward by establishing industry guidelines for CO2 specifications.
? エニ outlines in its global energy statistical review that fossil fuels managed to meet four-fifths of demand last year, with an approximate growth rate of 2%, accounting for around 80% of energy demand. The Italian giant's data shows that oil made up 30%, coal 28%, and gas 23% of the energy mix, despite the rise in the share of solar PV and wind, which was below 3%.
? Amplus Energy , EnQuest ’s Veri Energy , and Ocean-Power AS decided to pool resources in a decarbonization quest to bring offshore electrification operations to new heights in the UK and Norway by incorporating carbon capture solutions to slash oil and gas installations’ carbon emissions.
??For more recent news, check out these headlines and visit our website:
Thanks for reading this newsletter and stay tuned for our next edition!
Kind Regards,
???????????? ?????????
Senior Editor at Offshore Energy Today
?? Want to stay in the loop?
Let us be your eyes and ears in the offshore energy industry and do not forget to subscribe to Offshore Energy's daily newsletter, which will be sent straight to your inbox, so that, you can start your day with your morning dose of coffee/tea and all our content at your fingertips.
??Wondering where you can showcase your experience and expertise in #oilandgas, #offshorewind, #greenmarine, #subsea, #marineenergy, #hydrogen, and other offshore energy sectors while getting the latest scoop on the developments in the industry?
Look no further than?Offshore Energy Exhibition & Conference 2024?(OEEC 2024) and come to RAI Amsterdam in the Netherlands on November 26?&?27, 2024. You can buy your ticket for this event at Offshore Energy's OEEC event website! To exhibit at OEEC 2024, hurry up and book your stand!
??To ensure you do not miss out on overviews from other markets available on Offshore Energy,?subscribe to their market-specific LinkedIn newsletters:
Follow us on: LinkedIn | X (former Twitter) | Facebook | Google News | Google News - Offshore Energy
???? ???????? ???? ?????? ???????????????? ???????????? ???????????????????? ?????? ???????????????????? ???????? ???? ???????????????? ???? & ???? ?????? ???????? ???????? ?????? ???????????????? ????????????????'?? ???????????? ???????? ????, ???? ???? ?????????????? ???????????????? ???????????????????????? ?????? ?????????????????? ?????? ?????? ???????????? ?????? ???????????????? ????????????????????, ?????????????????????? ?????? ?????? ?????????? ???????? ???????? ???? ???????????? ???????????????? ?????? ???????????????????? ???? ?? ???????? ?????????????????????? ????????????!
?? ???? ???????? ?????????????? ???? ???????????? ?????? ???? #???????????????? ?????????????? ?????? ???????????????? ???????????????? ???????? ?????? ?????????????? ???? ?????????? ?????? ???????????? ???? ???????????? ?????? ?? ???????? ????????????-????????????, ??????????????????, ?????? ?????????????????????? ???????????????? ?????? ????????????!
Roustabout Borr drilling
1 个月Roustabout offshore experience
utility Supervisor Gaz/oil
1 个月J’accepte
Analista Financeiro | Especializa??o em Finan?as
1 个月Insightful perspective! The energy landscape is indeed evolving, and adaptability will be key to navigating its future.