Halliburton chief unites world energy leaders for energy transition, net zero

First time I am seeing the huge gap between supply and demand, we are not far from when a buyer will be searching for a barrel of oil, Halliburton Chief Jeff Miller
Energy transition and net-zero impossible to do over-night, Aramco chief Amin H. Nasser
US giant energy producer Exxon Mobil aims to achieve net-zero greenhouse gas emissions from its operations in oil and gas fields in West Texas and New Mexico by 2030, Exxon Mobil chief Darren Woods
Houston: (06 Dec 2021) World energy leaders joined 23rd World Petroleum Congress (WPC) to fill the gap between supply and demand. They also focus on net-zero and energy transition. All leaders agree on this mission is impossible overnight.
Halliburton CEO Jeff Miller said during the 23rd World Petroleum Congress in Houston, lack of investment in fossil fuels and global pandemic impacts have led to an environment of scarcity. World giant energy company Halliburton CEO Jeff Miller said we are seeing roughly half of the typical international spending on traditional oil and gas. In West Africa, a prolific oil-producing region, Halliburton is seeing a 75% decrease in spending compared to historical norms. A variety of factors pulling back on oil and gas production and leaning into a clean energy generation, geopolitical forces, and a lack of capital availability driven by less-than-stellar investor returns — have driven those trends. The first time I am seeing the huge gap between supply and demand, we are not far from when a buyer will be searching for a barrel of oil.
Halliburton is positive about the research and development of technologies to maintain its customers in the fossil fuels sector and its own internal functions, such as advancement in fracturing, drilling, and digital. Halliburton has a dozen companies in its initial phase start-up accelerator program, Halliburton Labs, other branches focused on lowering carbon emissions and driving efficiencies in the field. Halliburton Labs named four startups to the accelerator program in mid-November.
Meanwhile, Halliburton announced plans this year to cut down its carbon emissions by 40% by 2035, Jeff Miller added in his speech. Halliburton is also introducing “sustainability labels” to give customers choices between services based on their relative emissions, Jeff told to press.
Giant energy leader Aramco chief, Amin H. Nasser said it is increasingly assumed that the entire world can run on alternatives, and the vast global energy system can be totally transformed, virtually overnight.
Or that investments requiring roughly 115 trillion dollars will be made in less than 30 years. Most worrying of all is the assumption that the right transition strategy is in place.
Energy security, economic development, and affordability imperatives are clearly not receiving enough attention.
So the urgent new quest for our industry is to chart a course that will continue to realistically meet the world’s rising energy needs – reliably, affordably, and sustainably.
Amin Nasser shared three facts about the importance of fossil fuels
1st: More than 99% of the world’s vehicle fleet is still conventional.
Despite a lot of efforts underway, there are still no real viable alternatives to conventional fuels in aviation, shipping, and even trucking. When it comes to petrochemical feedstock and lubricants, even the most aggressive transition plans still offer few alternatives. And the combined share of solar and wind in the world’s primary energy mix is still less than 2%. Alternative sources are making progress, and we appreciate it, but their deployment at scale, across the world, will take a lot longer than is being assumed. And impossible to shift everything on clean energy overnight. It’s not going to happen in the next decade.
And it does not help when the pressure is mounting to stop all new investments in oil and gas. Across the industry, upstream capex fell by more than 50% between 2014 and 2020, from $700B to $300B.
Consequently, supplies have started to lag. This is also hurting spare oil production capacity, which is declining sharply. Yet this is happening against the backdrop of healthy demand growth.
2nd: the rest of the world will not transition at the same speed as the developed world
Developing world hosts most of the human lives, and most of the roughly 2 billion new energy users on the planet by 2050 will be living there too.
It is where more than 2.6 billion people still do not have access to clean cooking, and three-quarters of a billion lack electricity. And it is where people aspire to ride on two wheels, not four.
So affordability is a real issue, and a one-size-fits-all strategy will not cut it in a multi-speed, multi-source transition.
3rd: because oil and gas will be needed for decades to come, accelerating the reduction in their emissions is a strategic and urgent necessity for climate goals to be met.
We are not short of opportunities, such as:
– producing lower carbon products like blue hydrogen and blue ammonia
– developing more efficient and lower emission internal combustion engines
– leveraging non-combustible uses of oil such as non-metallic materials for construction, housing, automotive, solar, and wind
– making the Circular Carbon Economy that G20 world leaders endorsed last year a reality
And there is currently no credible course towards the climate goals that do not include Carbon Capture, Utilization, and Storage.
A majority of key stakeholders agree with these realities as much as they believe in addressing climate change said in his speech. Publicly admitting that oil and gas will play an essential and significant role, during the transition and beyond, will be hard for some. But admitting this reality will be far easier than dealing with energy insecurity, rampant inflation, and social unrest if prices become intolerably high. And net-zero commitments by countries may start to unravel.– Reported by Ali

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