A report released on Thursday states that in order to prevent more severe extreme weather events caused by human-induced climate change, the oil and gas industry, a significant contributor to global warming emissions, must undergo a swift and significant transformation.

The International Energy Agency has stated that in order for the world to have a chance at meeting its climate goals, the current annual investment of $800 billion in the oil and gas industry must be reduced by 50%. Additionally, greenhouse gas emissions, which are a result of burning fossil fuels such as oil, need to decrease by 60%. These gases contribute to the warming of the planet and can lead to severe consequences like extreme weather events.

The IEA released its report right before the start of the upcoming United Nations climate conference, also known as COP28. Attendees of this conference include oil and gas companies, along with other individuals and groups involved in the fossil fuel industry. This has sparked backlash from environmental activists and climate specialists. However, some argue that it is important for the sector to participate in discussions about transitioning to more sustainable energy sources.

“The upcoming COP28 in Dubai marks a crucial moment for the oil and gas industry,” stated Fatih Birol, the executive director of the IEA, upon the release of the report. “Producers in this sector must make significant choices regarding their role in the global energy market.”

The Associated Press found that 400 individuals linked to the fossil fuel industry participated in last year’s climate conference in Egypt. The upcoming meeting has faced criticism for selecting the president of the Abu Dhabi National Oil Company.

The energy industry is accountable for the majority of greenhouse gas emissions caused by human activity, with oil and gas accounting for approximately half of these emissions, according to the IEA. These companies are also responsible for emitting over 60% of methane, a gas that has 87 times more heat-trapping capabilities than carbon dioxide over a 20-year period.

According to the report, oil and gas companies have the potential to generate revenue through the clean energy sector by utilizing technologies such as hydrogen and carbon capture. However, both clean hydrogen (produced from renewable electricity) and carbon capture (which removes carbon dioxide from the atmosphere) have not been extensively tested on a large scale.

The study examined commitments to addressing climate change made by countries, as well as a hypothetical scenario in which the world achieves net zero emissions by 2050. It concluded that if countries follow through on their pledges, the demand for oil and gas will decrease by 45% compared to current levels by 2050. However, if the world successfully reaches net zero emissions by that time, the demand would decrease by 75%.

In a previous report released this year, the IEA predicted that global demand for oil, gas, and coal will reach its peak by the end of the current decade.

According to Vibhuti Garg, an energy analyst at the Institute for Energy Economics and Financial Analysis based in New Delhi, the demand for oil and gas is expected to decrease.

She stated that there are more affordable and cleaner options available, which may lead countries to switch to these alternatives and decrease their dependence on costly fuels.

___

You can find Sibi Arasu on X, previously known as Twitter, by searching for the handle @sibi123.

Private foundations provide support for Associated Press’ coverage of climate and environmental issues. You can learn more about AP’s climate initiative here. The AP is solely responsible for all of its content.

Source: wral.com