Charting the future : Sustainable shift from fossil fuels to renewable energy
The global energy landscape is undergoing a profound transformation as the world moves away from fossil fuels toward renewable energy .
This paradigm shift , driven by technological innovation , environmental goals , and changing consumer demands , is reshaping the oil and gas industry . Once dominating 83 % of global energy use in 2020 , fossil fuels are predicted to fall to just over 50 % by 2050 , signaling an urgent need for adaptation . This article explores the critical strategies and trends that are defining the energy transition and setting the stage for a greener future .
Text by Parker Hannifin
Energy transition The oil and gas industry is undergoing a paradigm shift as it grapples with the energy transition from fossil fuels to renewables . In 2020 , fossil fuels accounted for 83 % of global energy , but this is predicted to drop to 50-55 % by 2050 . The United States is seeing a decline in oil demand due to the rise of electric vehicles and regulatory efforts to curb greenhouse gas emissions . Despite this , global oil demand is expected to peak in the late 2020s , with oil ’ s share of world energy demand projected to decrease from 29 % in 2018 to 16 % by 2050 . Oil prices recovered post-pandemic , hitting over 75 / barrel , which is a significant increase from the 2020 average of 75 / barrel , which is a significant increase from the 2020 average of 43.67 . However , companies are cautious , focusing on rebuilding balance sheets and reducing capital expenditures . Natural gas , including LNG , is expected to see an increase in demand until the late 2030s , with its global energy demand share projected to rise from 26 % in 2018 to 29 % by 2050 . U . S . LNG exports have grown substantially , with 13 % of gas extracted being exported in 2020 . The demand for LNG is forecasted to double by 2040 , with China ’ s carbon neutrality goal by 2060 playing a significant role .
Investment in renewable energy Oil and gas companies are investing in renewable energy as part of their decarbonization efforts . A 2020 DNV survey showed that 57 % of industry professionals reported an increase in renewable www . heat-exchanger-world . com Heat Exchanger World December 2024
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