- Jul 27, 2021 4:56 am GMT
The main source of 73% global GHG emission is due to fossil fuels – Reducing this is the 'direct' way. Europe is following this direct approach leveraging renewables, perhaps because their companies don't have the enormous success of a shale revolution to maintain.
- In Europe, companies (BP, Shell, Equinor and Total) and countries are diversifying into renewables
- In US, companies with enormous fossil-fuel resources are using 'indirect' way ( reducing methane leakages & investing in CCS). They seem to be avoiding the direct approach.
- The problem with US indirect approach is; methane leakages accounts only for 10% GHG emissions; i.e. 5% of 73%
- The US companies like ExxonMobil plan to invest $3.0 billion on 20 CCS projects. It sees a potential in public/private partnership to invest $100 billion in CCS
- The appetite of legacy U.S. energy companies has largely stayed focused on oil & gas production and shale revolution.
WHAT COULD CHANGE THIS
- The demand for oil and gas will fall if the Biden administration achieves its goals of greening electricity and changing to EVs.
- Furthermore, if supply follows demand, oil and gas could fall by 30% from 2020 to 2035-2040.
The oil and gas companies thriving in Permian could stop drilling new wells and instead invest in wind/solar systems. There is money to do it. The January 2021 federal moratorium on new oil and gas well leases on federal lands provides an opportunity and motivation to do it.
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