Why The Energy Transition Will Be So Complicated

Trailing the other fuels, oil prices reached the US$80 range. With a tightening balance between supply and demand, some were warning that oil could exceed US$100 a barrel. Gasoline prices have hit levels in the United States that alarm politicians, who know that such increases are bad for incumbents. That — along with worsening inflation — is why the Biden administration asked Saudi Arabia and Russia to put more oil into the market, so far to no avail. The administration then announced, on the eve of Thanksgiving, the largest-ever release of oil from the U.S. government’s strategic petroleum reserve, in coordination with other countries, to temper prices.

Energy shock 

An electricity pylon in front of a cooling tower at Uniper SE's coal-fired power station in Ratcliffe-on-Soar, U.K., Dec. 2, 2021.
An electricity pylon in front of a cooling tower at Uniper SE’s coal-fired power station in Ratcliffe-on-Soar, U.K., Dec. 2, 2021. Photo by Chris Ratcliffe/Bloomberg files

Is this energy shock a one-off resulting from a unique conjunction of circumstances? Or is it the first of what will be several crises resulting from straining too hard to bring 2050 carbon-reduction goals rapidly forward — potentially prematurely choking off investment in hydrocarbons, thus triggering future shocks? If it’s a onetime event, then the world will move on in a few months. But if it is followed by further energy shortages, governments could be forced to rethink the timing and approach to their climate goals. The current shock offered just such an example: Although Britain is calling for an end to coal, it was nevertheless forced to restart a mothballed coal-powered plant to help make up for the electricity shortage.

Jean Pisani-Ferry, a French economist and sometime adviser to French President Emmanuel Macron, is among the most prominent voices pointing to the consequences that could result from trying to move too fast. In August, before the current energy crisis began, he warned that going into overdrive on transitioning away from fossil fuels would lead to major economic shocks similar to the oil crises that rocked the global economy in the 1970s. “Policymakers,” he wrote, “should get ready for tough choices.”

Source : https://leaderpost.com/commodities/energy/oil-gas/daniel-yergin-why-the-energy-transition-will-be-so-complicated

683
Energy Realism Vs. The Energy Transition Narrative - Which Will Prevail In 2022?

Source:Forbes

Energy Realism Vs. The Energy Transition Narrative - Which Will Prevail In 2022?

Saudi Arabia calls for flexibility in energy transition

Source:Reuters

Saudi Arabia calls for flexibility in energy transition

Unions Have the Potential and the Responsibility to Advance a “Just Transition”

Source:Truthout

Unions Have the Potential and the Responsibility to Advance a “Just Transition”

Energy transition to be inflationary and reduce potential growth – Natixis

Source:FXStreet

Energy transition to be inflationary and reduce potential growth – Natixis

‘State of the World’ Special Address by President von der Leyen at the World Economic Forum, via videoconference

Source:europeansting.com

‘State of the World’ Special Address by President von der Leyen at the World Economic Forum, via videoconference