The transition of the global energy sector towards lower carbon emissions has been embraced around the world. But the transition is proving more complex and challenging than many have assumed and is unlikely to be a smooth journey. Renewable costs have come down dramatically, but the world continues to depend on hydrocarbons for over 80% of its energy. The global energy crisis that began in the second half of 2021 was generated by the economic rebound from the Covid-19 lockdown and “preemptive under investment” in energy resources.
The crisis has been since amplified by war and geopolitical turmoil. Energy security has returned to the top of the agenda, as countries face supply shortages and skyrocketing prices. Governments are struggling with the economic impact and competing priories, while investors are redirecting capital. The energy transition is moving at different paces in different parts of the world and with different approaches, which is embodied in a new North-South divide.
The future role of the oil and gas industry will be partly determined by what happens with technologies such as carbon capture and the adoption of hydrogen in the current energy systems. The rapid shift towards electrification will put growing stress on the supply chains for minerals to meet “energy transition demand”, and critical questions for the future will include the speed at which those supply chains can respond and their impact on costs. All of these issues will be made more difficult as they unfold in a more contentious world shaped by a new fragmented geopolitical order.
Daniel Yergin, Pulitzer Prize-winning author of The Prize and The New Map, and Vice Chairman at S&P Global, will take the audience through the state of today’s energy markets, the opportunities and challenges presented by the transition from hydrocarbons to renewables, and the intersection of this transition and the challenging geopolitical environment.
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