An Old Energy Look At The New Energy Transition

Data and technology will fuel the energy transition

Saugata Saha, 15 December 2021 (S&P Global)

“…Investment in the energy transition is well underway, with daily news reports announcing new projects for wind, solar, hydro-generation, battery and other storage technologies, hydrogen, bio-based fuels, and carbon capture and storage…[But] despite global efforts to reduce greenhouse gas emissions (GHGs), global oil demand will continue to grow slowly throughout this decade and then plateau just below 115 million b/d of oil between the late 2030s and first half of the 2040s…

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…[A]n increased global focus on environmental, social and governance (ESG) factors is encouraging oil and gas market participants to produce, invest in, and trade in energy resources with lower associated emissions… Carbon intensity (CI) is one metric the market has started to employ…Impacts to the global supply curve will be quantifiable, as well, by incorporating the cost of addressing or offsetting emissions in the cost of production…A host of new standards and price indicators for sustainable and renewable fuels, voluntary carbon credits, and carbon-credit pricing and allowance assessments now exist, enabling the renewables and sustainable fuels markets to be monetized more easily…

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Technologies like artificial intelligence and blockchain can help improve processes and speed of trading in commodity and energy markets…These market developments signal that we are at a new juncture in the energy transition…From enabling trade of environmental attributes, to analyzing and relating multiple factors that impact value, technology will play an ever-greater role in valuing the commodities and energy products that will drive decarbonization…” click here for more

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