• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 hour The Most Annoying Person You Have Encountered During Lockdown
  • 9 hours WE have a suicidal player in the energy industry
  • 14 hours Washington doctor removed from his post, over covid
  • 13 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 6 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 3 hours How to Create a Pandemic
  • 6 mins Which producers will shut in first?
  • 1 min Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 12 hours Shale Legs
  • 12 hours KSA taking Missiles from ?
  • 3 hours Death Match: Climate Change vs. Coronavirus
  • 18 hours Trump eyes massive expulsion of suspected Chinese spies
Alt Text

How COVID-19 Could Spark The Next Recession

The COVID-19 crisis is wreaking…

Alt Text

Refiners Are Having To Pay To Produce Gasoline

As the challenges continue to…

Alt Text

Oil Tumbles Towards $20 As Glut Grows

The brief rebound in oil…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

Despite Climate Fears, World Economy Runs on Fossil Fuels

Statoil Chief Executive Officer Helge Lund said those advocating for a future without fossils fuels are pining for a future economic era that may never come.

"We have to live with fossil fuels as the dominant part of the energy mix for decades," he said during the launch of Statoil's annual conference.

His comments came as international negotiators wrapped up two weeks of climate talks in Warsaw, Poland. Delegates there managed to reach a last-minute agreement to work toward individual targets for carbon dioxide emission reductions by 2015 but fell short of outlining specific plans for how and when plans would be assessed.

Related article: Where’s The Top Place to Produce Oil and Gas Today?

Two weeks ago, the World Meteorological Organization said the level of greenhouse gases in the atmosphere reached a record in 2012, one of the warmest years on record. CO2 from the burning of fossil fuels was the dominate form of emissions and that, the WMO said, was driving the warming effect on the climate.

"If we continue with ‘business as usual,’ global average temperatures may be 4.6 degrees (Centigrade) higher by the end of the century," WMO Secretary-General Michel Jarraud said.

According to the International Energy Agency's World Energy Outlook, however, it may be business as usual for the foreseeable future. While renewables like wind, solar and hydropower are gaining ground, the global economy still relies on fossil fuels as its dominant source of energy.

Statoil's Lund said fossil fuels account for 82 percent of the world's energy mix, the same level that existed in the late 1980s. Even if renewable energy gains ground, they only reduce the amount of fossil fuel in the global mix by 75 percent in 2035, he said.

Cleaner fuels like natural gas may be part of the solution for companies like Statoil. For the Sierra Club, however, it's that mindset that exacerbates the problem. Replacing one fossil fuel with another isn't the solution, the group says. Last week, the Sierra Club organized protests in California, saying gas-fired plants cause air pollution that's already sickened people in the state.

Related article: Russia Takes Steps to Increase LNG Exports

Lund, however, said a carbon-free future is unreasonable. Natural gas has its problems but it may be the cleanest form of fossil fuel available. Energy companies still need to drill, therefore, because the world needs 10 times the gas production capacity available from the Norwegian continental shelf to meet the demands of a low-carbon future, he said. For oil, the world needs perhaps four new Saudi Arabias just to replace the loss of oil production from maturing fields.

Statoil's boss said those in the energy industry do carry a responsibility to reduce their carbon footprint. Wind, solar and hydropower may provide alternatives, he said, but there is no single solution to the crisis.

"Those who argue that we should stop exploring, harvest existing fields and block new opportunities are, at best, preparing for a future that doesn't exist," he said.

By. Daniel J. Graeber of Oilprice.com


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Angel_Investor on November 27 2013 said:
    "Statoil Chief Executive Officer Helge Lund said those advocating for a future without fossils fuels are pining for a future economic era that may never come."

    "Those who argue that we should stop exploring, harvest existing fields and block new opportunities are, at best, preparing for a future that doesn't exist," he said.

    Mr. Lund has obviously not considered innovation in his strategic view, which is imprudent in my opinion. He’s quite right in that a future without fossils doesn’t exist today, but it may exist tomorrow.
  • Lee James on November 27 2013 said:
    Mr. Lund does seem a little fatalistic. We can, for example, strive for a future with renewable electric energy storage, and a world-wide price on carbon of $40 or more per ton of CO2.

    in many ways, we've only begun to mobilize -- and --results are encouraging over the last couple of years. In many places, the majority of new electric power generation is coming from renewable energy.

    Redouble our efforts! Also, reduce carbon pollution of all kinds now!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News