This is a news compilation setting the record straight on the day’s top anti-oil and gas stories and providing research and facts to counter misinformation about the oil and gas industry.
International Energy Agency road map to net-zero says an immediate stop to oil and gas investment would be needed. But this makes the fatal error that environmental technology for oil and gas hasn’t improved and won’t keep improving.
International Energy Agency: Net Zero by 2050 A Roadmap for the Global Energy Sector
The International Energy Agency’s new report makes the critical mistake of assuming that technology in the oil and gas industry will stay the same even as they assume green technology will improve greatly. The IEA vision for the future is already out of date because oil and gas environmental technology already improved.
- It is an apple to oranges comparison to assuming that technology like carbon capture deployed in the industry today won’t continue to improve and be deployed in more places at lower costs to make more oil and gas production net-zero. In addition, emerging circular economy technologies hold the promise of true sustainability for oil and gas. Real zero production and consumption technologies are already beginning to take shape like Questerre Energy’s circular economy project.
- At the same time as the IEA ignores emerging oil and gas technology, it also assumes technology not yet in existence will solve the materials problem for renewables. It found that its global energy transition plan in their new report, would result in demand for minerals such as lithium, graphite, nickel, and rare-earth metals rising by 4,200%, 2,500%, 1,900%, and 700%, respectively, by 2040. This would require mining around the world at a historically unprecedented scale requiring new discoveries and technology to manage the massive environmental and social impacts.
- IEA’s own energy demand scenarios still show the significant role oil and natural gas will need to play out to 2040, with the oil supply required to reach over 100 million barrels per day in order to meet the world’s growing energy demand. Even if the roadmap is followed, there will still be demand for oil and gas.
- In the IEA’s net-zero vision, OPEC producers will become the main supplier of oil since it will still be a part of the energy mix. This would be counter-intuitive to promoting the values of ESG. This BMO report confirms that Canada has the highest ESG ranking for major oil producers. The IEA road map is counterproductive as it will allow the global energy supply to shift to countries that are more polluting, less transparent, less sensitive to societal pressures, and less committed to emissions reductions.
- The IEA plan explicitly says it can only work with global buy-in and cooperation of all Nations. But based on non-OECD countries’ development of coal alone, the IEA scenario is counter to the reality of demand for reliable energy in developing countries. For example, China is building a new coal power plant each week as it brings hundreds of millions of its citizens out of poverty.
Here is a story that gets it right.
The International Energy Agency’s new report detailing a roadmap to net-zero could lead to problems with energy security writes Terence Corcoran. Issues such as massive public spending and global cooperation play a part, but the most glaring issue in the report is that the agency believes most of the new technology related to the path to the net-zero aren’t even commercially available yet.