Any serious energy discussion following COP21 must by necessity address transitions in the energy industry. Namely, how will the energy industry meet a growing global hunger for energy while effectively reducing greenhouse gas emissions?
Today, fossil fuels represent about 80% of the primary source for power generation. Oil reserves are abundant and technology enables 250+ years of gas reserves. Renewable energy, including wind and solar, also represents huge potential for growth. Yet, we stand at a crossroads: If CO2 emissions are to be reduced, we need to adapt our energy production mix and consumption patterns.
However, the transition to a New Energy World is not going to happen overnight. The world needs fuel now for its massive, myriad and growing energy needs, and it is the leadership of the oil and gas industry that is going to fulfill that need.
Fossil fuel producers can play a leading role in this industry transition in many ways. First, they can lower the carbon emissions of their core operations by increasing efficiency and reducing flaring. Our modeling shows a refinery can increase revenue by 1%, for instance, just by optimizing its generation assets and improving its energy efficiency.
Second, energy producers can promote the use of the cleanest burning fossil fuel available — natural gas — as a “bridge” to our energy future, ensuring fewer greenhouse gases are emitted into the atmosphere. Schneider Electric will support the developments associated to the shift to gas by enabling this transformation with modern technologies in production, transportation and distribution.
Read our latest white paper, “Shift to Gas: A Contribution on the Path to Sustainability,” for a detailed analysis.
Third, energy producers can double down on their efforts to diversify their portfolios, investing more in renewables and the emerging technologies needed to speed their availability and integration into the grid. Finally, they can help promote energy efficiency measures and systems at their customers’ premises, whether in industry, commercial buildings or residential.
Explore Schneider Electric’s solutions that help the Oil & Gas sector achieve better energy and process efficiency.