French energy giant TotalEnergies SE expects global oil demand to peak before the end of this decade, as more nations crack down on fossil fuels and promote cleaner power in transport and industry to mitigate global warming. Total’s 2021 Energy Outlook, which takes into account new net-zero pledges made by countries including the U.S. and China, assumes crude demand will plateau before 2030 and then decline. To learn more, read, “Total Sees Oil Demand Peaking Before 2030 in Power Switch.”
- Total’s Momentum scenario, which is based on environmental targets and policies announced worldwide, points to a 2.2 to 2.4-degree increase in global temperatures by the end of the century.
- This year’s report “considerably” raises the company’s forecasts for global solar and wind investments by the middle of the century to electrify transport as governments increasingly ban the sale of internal combustion vehicles.
- Meanwhile, natural gas is seen keeping its role as a transition fuel, especially as carbon dioxide and methane emissions are increasingly reined in.
Path to 100% Perspective:
According to the IEA’s landmark 2050 roadmap, there is a viable pathway to build a global net zero emissions energy sector by 2050, but it is narrow and calls for a transformation in how energy is produced, transported and used globally. The Intergovernmental Panel on Climate Change (IPCC) recommends that to limit global warming to 1.5C°, global CO2 emissions should decline by 45% by 2030 in comparison to 2010 and reach net zero by 2050.
Meanwhile, the price of electricity does not need to increase when power systems move to net zero. Utilities are shifting from a costly operational expenditure (opex) model, where capital is continually drawn into fuelling and maintaining legacy inflexible coal, oil, and gas plants – to a new model where up-front capital expenditure (capex) is invested in predictable, low maintenance, renewable energy technology. Flexibility creates the conditions where renewable energy is the most profitable way to power our grids: ensuring back-up power is available when there’s insufficient wind or solar – and earning rewards from capacity mechanisms.
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