NEWS - NORTH AMERICA
Energy Future
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xxonMobil’s 2019 Outlook for Energy serves as the company’s latest
analysis on how the world will use energy, in all its forms, through
2040. achieve society’s climate aspirations. ExxonMobil and its partners are
doing their part by working to develop lower CO2 emission energy
sources like advanced biofuels and finding new ways to capture CO2.
As populations grow and gain greater access to energy, living standards
around the world will rise. A booming middle class will increase
demand for homes, transportation, electricity and consumer goods, as
well as the energy to power them all. The challenge is – and will be
– satisfying this growing demand while reducing the risks of climate
change. Commerce and trade drive transportation energy consumption up
more than 25%.
Technology holds the greatest potential for helping society address the
dual challenge. Technological advances have significantly improved
energy efficiency and helped unlock diverse and abundant sources of
energy.
While more electric, hybrid and other energy-efficient vehicles are
expected to hit the road by 2040, overall demand for energy in the
transportation sector is still expected to increase. This is especially
true in developing regions, where a growing middle class will require
more commercial transportation by bus, rail, plane, truck and marine
vessel. Affordable and widely available oil will remain the predominant
transportation fuel. •
There is no one single solution to this problem. Instead, it will take
harnessing a variety of energy sources and technologies that, guided by
policies, will help deliver reliable energy around the world.
This year’s Outlook has seven key takeaways. Check them out below.
Energy is fundamental for modern life.
In the coming decades, more and more people around the world will
live in modern homes, purchase time-saving appliances, open new
businesses and require additional transportation options – all of which
depend on reliable access to modern and affordable energy. This energy
offers millions of people the chance to prosper and improve the quality
of their lives.
Global energy demand rises by 20%.
Thanks to emerging energy-efficient technology, OECD countries
are expected to reduce their overall demand by around 5% and
reduce energy-related CO2 emissions by nearly 25%. In non-OECD
(or developing) countries, a combination of growing populations,
increased access to modern energy and improved living standards will
likely result in greater energy use, driving up overall global demand
by 20% by 2040. China and India, two of the world’s fastest-growing
nations, are likely to contribute around half of that growth.
Almost half of the world’s energy is dedicated to industrial activity.
Rising populations and urbanization will also result in the construction
of new homes and roads, as well as the production of household
appliances. Steel, cement and chemicals are essential in satisfying these
needs and today rely on energy-intensive industries. But with new
efficient technologies, manufacturers can increase their output while
curbing emissions.
Oil and natural gas remain important energy sources and require
significant investment.
Today, more than half of the world’s energy comes from oil and natural
gas, and it’s likely that these sources will continue to power the world
well into the future. To continue to meet future demand, investment
in oil and natural gas is required to replace the natural decline from
existing production.
Global electricity demand rises 60%.
The need to power more homes, factories, electric vehicles and
consumer goods is expected to increase electricity demand by 60% over
the next two decades. Natural gas, solar and wind will be the fastest-
growing energy sources helping to meet future electricity needs. Today,
natural gas is the No. 1 source of electricity generation in the U.S. It’s
not only popular for its affordability and abundance, but when gas-
fired electricity generation replaces coal plants, CO2 emissions can be
reduced by up to 60% while also producing fewer pollutants.
Global energy-related CO2 emissions peak, but remain above assessed
2°C scenarios.
Increased energy efficiency and lower-carbon sources are expected
to help curb CO2 emissions, but not enough to reach a 2°C pathway.
Additional technology-driven solutions and policies are still needed to
50
Chevron Sets New Greenhouse Gas Reduction Goals
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hevron Corporation (NYSE: CVX) has established new goals
to reduce net greenhouse gas (GHG) emission intensity from
upstream oil and natural gas. Emission intensity is the emission rate of
greenhouse gas per unit of energy produced. The company intends to
lower upstream oil net GHG emission intensity by 5 – 10 percent and
upstream natural gas net GHG emission intensity by 2 – 5 percent from
2016 to 2023.
The timing is aligned with stocktake milestones set in the Paris
Agreement on climate change.
The GHG emission intensity reduction metrics apply to all upstream
Chevron oil and natural gas, whether Chevron has operational control
or not.
“Global demand for energy continues to grow, and we are committed to
delivering more energy with less environmental impact,” said Michael
Wirth, Chevron’s chairman and CEO.
The new reduction goals build on other actions Chevron is taking to
address climate change by lowering the company’s carbon intensity,
increasing its use of renewable energy and investing in breakthrough
technologies. Earlier this year, the company established reduction goals
for methane emission intensity and flaring intensity.
Chevron is a member of the Oil and Gas Climate Initiative and is helping
fund a $1+ billion effort to develop new technologies and businesses
to reduce GHG emissions. Chevron also established a Future Energy
venture capital fund to invest in technology to reduce GHG emissions
and enable a greater diversity of energy sources. The company has also
invested more than $1 billion in carbon capture and storage projects
in Australia and Canada which are expected to reduce GHG emissions
by about 5 million metric tons per year. Chevron is using renewable
electricity to power some of its operations in California and Texas.
“Reducing greenhouse gas emissions is a global issue that requires
global engagement and action,” said Wirth. “We are taking action, while
continuing to deliver the affordable, reliable, ever-cleaner energy that
enables human progress.” •