{"id":28315,"date":"2024-09-24T09:15:00","date_gmt":"2024-09-24T08:15:00","guid":{"rendered":"https:\/\/www.engineernewsnetwork.com\/blog\/?p=28315"},"modified":"2024-09-23T09:27:15","modified_gmt":"2024-09-23T08:27:15","slug":"oil-and-gas-industry-slows-energy-transition-as-focus-shifts-back-to-fossil-fuels","status":"publish","type":"post","link":"https:\/\/www.engineernewsnetwork.com\/blog\/oil-and-gas-industry-slows-energy-transition-as-focus-shifts-back-to-fossil-fuels\/","title":{"rendered":"Oil and gas industry slows energy transition as focus shifts back to fossil fuels"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The oil and gas industry has pursued energy transition avenues to decarbonise its operations. However, heightened energy security fears amid the Ukraine war have brought back the focus on fossil fuels, which has led companies to scale down their energy transition pursuit. This will likely continue in 2024, but the switch towards low-carbon energy is expected to proceed, albeit at a slower pace, says GlobalData, the data and analytics company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">GlobalData&#8217;s thematic report, <strong><em><a href=\"https:\/\/www.globaldata.com\/store\/report\/energy-transition-in-oil-and-gas-theme-analysis\/?utm_source=cision&amp;utm_medium=press%20release&amp;utm_campaign=gd_press%20release_cision_oil%20and%20gas_energy%20transition_thematic%20report\">Energy Transition in Oil and Gas<\/a><\/em><\/strong>, highlights the energy transition related developments in the oil and gas industry. Companies are switching towards renewable power and other low-carbon options in their energy transition efforts. Most leading industry companies have adopted 2050 as the long-term goal for net-zero carbon emissions. A lot of promises made by them hinge on the successful implementation of their respective interim targets for 2030.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ravindra Puranik, Oil and Gas Analyst at GlobalData, comments: &#8220;Energy security has been a concern for most countries following the outbreak of the Russia-Ukraine war. The resultant supply chain disruption drove countries towards the readily available fossil fuels, thereby boosting oil and gas demand. On the other hand, the push for energy self-reliance and high inflation have somewhat derailed the clean energy adoption.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Leading oil and gas companies have set themselves decarbonisation targets for both the medium and long-term, relying on the existing and emerging technologies. Firstly, companies are increasingly investing in renewable power generation, with wind and solar power being a particular area of focus.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Puranik continues: &#8220;In 2020, several oil and gas companies announced ambitious energy transition targets. However, the hype around energy transition has somewhat subsided going into 2024. Profitability issues and inflation, along with high interest rates are causing uncertainties in undertaking renewable projects.&#8221;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"549\" src=\"https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0-1024x549.png\" alt=\"\" class=\"wp-image-28316\" srcset=\"https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0-1024x549.png 1024w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0-300x161.png 300w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0-768x412.png 768w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0-310x165.png 310w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2024\/09\/vcsPRAsset_3434416_177096_6e45533b-6215-4b0c-af9e-934ef63e98a5_0.png 1172w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The share of fossil fuels in global power generation mix is dwindling by the year. This space is increasingly being occupied by the renewable energy sources, especially solar and wind energy. Oil and gas companies are venturing in renewable power generation as part of their energy transition endeavour.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Efforts like carbon capture predominantly work to mitigate emissions, while hydrogen production, renewable power, and low-carbon fuels offer end-consumers alternatives to fossil fuels. Energy storage, mostly in the form of batteries, is another transition avenue being explored by the oil and gas industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Puranik concludes: &#8220;The oil and gas industry&#8217;s energy transition requires long-term planning to reduce or eliminate carbon emissions. In the short to medium-term, companies must incorporate transition fuels as well as low-carbon and zero-carbon energy sources in their portfolios. Despite periodic slowdowns, energy transition in oil and gas industry will take place and pave way for new global energy mix in the future.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The oil and gas industry has pursued energy transition avenues to decarbonise its operations. However, heightened energy security fears amid the Ukraine war have brought back the focus on fossil fuels, which has led companies to scale down their energy transition pursuit. This will likely continue in 2024, but the switch towards low-carbon energy is &hellip;<\/p>\n","protected":false},"author":1,"featured_media":28316,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[199,106],"tags":[6939,162,246,161],"class_list":["post-28315","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news-views-and-opinion","category-oil-gas","tag-decarbonisation","tag-gas","tag-globaldata","tag-oil"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Oil and gas industry slows energy transition as focus shifts back to fossil fuels - Engineer News Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.engineernewsnetwork.com\/blog\/oil-and-gas-industry-slows-energy-transition-as-focus-shifts-back-to-fossil-fuels\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oil and gas industry slows energy transition as focus shifts back to fossil fuels - Engineer News Network\" \/>\n<meta property=\"og:description\" content=\"The oil and gas industry has pursued energy transition avenues to decarbonise its operations. 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