The Need for Green Energy Ramps Up; Oil and Gas Sectors in the Energy Transition
“A transition to clean energy is about making an investment in our future.” – Gloria Reuben
Nowadays oil and gas sectors face opposition from the public because of the environmental impact of fossil fuels. Apart from the public, stakeholders and policymakers also express their opinions on the need for alternate energy since the world with green energy will seem significantly different from today’s world. If oil, gas and coal companies want to remain successful in their domains, they need to focus on not only surviving the low carbon energy generation but also on producing green energy.
The energy transition has become a challenging question due to the demand, social and financial future of oil, gas and coal sectors all over the world. The value of these sectors in producing next-generation energy resources and technologies will depend on how well they apply Environmental Social Governance principles to their green energy-related business models. Here, let’s see some of the best green energy sources that could be great solutions to global energy needs in the future and innovative methods for sectors in the energy transition.
Wind energy, specifically appropriate to offshore and higher altitude sites, depends on the power of airflow that pushes turbines to generate electricity. The form of kinetic energy is converted into mechanical power with the power of wind turbines, and then mechanical power is converted into electricity through a generator. Mountains, vegetation and water bodies control wind flow patterns, and the wind is caused by several elements – the uneven heating of the atmosphere by the sun, rotation of the earth and variations in the earth’s surface. We can use wind energy because it is available everywhere on the earth.
This type of green energy source is generated using photovoltaic cells that capture sunlight and convert it into electricity. There are several benefits of sunlight in our daily lives such as Solar Electricity, Solar Lighting, Solar Heating, Solar Water Heating, Solar Ventilation, Portable Solar and Solar Transportation. As the sun is a boundless energy source, it is the ultimate approach to solving the energy needs of the world. And also, solar energy brings a number of business and job opportunities.
Hydropower has been the most commonly used form of renewable energy. Through the flow of water in rivers, dams and streams, we get hydropower. This type of energy is generated by capturing the energy based on the forces created by flowing water. Generally, hydropower is generated by storing water in a dam or reservoir.
Biomass, one of the types of sustainable and renewable energy, is the fuel that is developed from organic materials such as scrap lumber, forest debris, certain crops, manure and some types of waste residues and is very useful for rural areas Biomass provides us with some other benefits that include protecting our environment and generating business opportunities.
It is a clean and sustainable form of energy. We get this type of green energy from the thermal energy stored under the curst of the earth. It is used in more than twenty countries for heating and cooling purposes and the US is the largest producer of geothermal energy in the world.
The least popular energy source but has the enormous capability of becoming one in the succeeding years. It can be produced in two ways: barrage generation or tidal stream generators. The power it produces is environmentally friendly and has less effect on ecosystems.
Companies in the transition
The following energy companies, which have already started projects for the energy transition, are the major energy-focused companies and have agreed to six energy transition principles such as; 1. Public support for the goals of the Paris agreement, 2. Industry decarbonisation, 3. Energy system collaboration, 4. Development of carbon sinks, 5. Transparency and 6. Industry and trade associations.
Exxon, one of the largest international oil companies, has focused on its interest in investing in renewable energy technologies for future projects. They plan to promote well-made, high-impact policies that can advance the deployment of market-based, cost-wise solutions. Even though the major strategy of the company revolves around decreasing greenhouse gas emissions, the company has signed an agreement to buy 2.5 million barrels of renewable diesel.
BP, the first big oil company which started renewable projects, generates energy from wind and solar. Beyond Petroleum, formerly known as the British Petroleum Company, has more than 2200 megawatts of wind capacity in the US, and invested in and built a renewable energy capacity of 50 gigawatts by 2030. It also develops bio-energy offer solutions for marine, heavy-duty transportation and aviation and a few of its most thrilling work is in venturing, where they are creating investments in a variety of smart technologies and exploring new business models.
Eni, an Italian company, has long-term goals and plans related to renewable energy. Currently, the company is coming up with two new business groups: Natural Resources and Energy Evolution. With the purpose of growing its offshore and onshore wind capacity, Eni has made partnerships with Norwegian Energy Company Equinor and GE Renewable Energy in France. With clean energy sources as an important corporate strategy, Eni, an integrated energy company, aims at achieving the entire decarbonization of its processes and products by 2050.-
Shell, one of the global groups of energy companies, uses advanced energy technologies to build a sustainable energy future. It is investing in a much lower-carbon technology such as wind and solar, new electric vehicle charging and hydrogen and an interconnected power business that will provide electricity to millions of industries, homes and companies. It reinforces global economic activity and develops the quality of life. The total plan of Shell for renewable is to invest $500m a year in clean energy technologies.
Chevron, with the aim of creating a better life with reliable and affordable clean energy, believes in the power of energy for a brighter future. Even though Chevron’s investments in renewable have been comparatively scant, this US company has invested in solar, wind and geothermal projects for the last two decades. In 2018, Chevron opened a Future Energy Fund with the first commitment of $100m.
Renewable Energy Organizations and Research Centres
Research related to renewable energy research in order to invent new approaches or technologies to counter climate change is on the rise around the world. The key concept of this research is to lead the world with clean energy solutions. These are the most renowned research centres and organizations, and the companies in the energy transition use their latest technologies or methods for green energy generation.
- American Council on Renewable Energy
- American Solar Energy Society
- American Wind Energy Association
- Biomass Thermal Energy Council
- Centre for Alternative Technology
- Centre for Renewable Energy Systems Technology
- Citizen Partnerships for Offshore Wind
- Clean Energy Institute at the University of Washington
- Environmental and Energy Study Institute
- European Renewable Energy Council
- Florida Solar Energy Centre
- Geothermal Energy Association
- Geothermal Rising
- International Hydropower Association
- International Renewable Energy Agency
- International Renewable Energy Alliance
- International Solar Energy Society
- National Renewable Energy Laboratory
- Solar Energy Industries Association
- World Bio-energy Association
In view of the above, we have concluded that green energy can dominate the corporate world if the oil, gas and coal sectors adopt appropriate transition measures. Green energy, which provides a cleaner alternative to many present energy sources, is the hope of the future world. These energy sources are not only good for the environment but also good for job creation. When it comes to fossil fuels, they do not provide a long-time solution to our energy needs and the related energy sources don’t create many job opportunities in this post-pandemic world. As per the statement of the Environmental Protection Agency (EPA), green energy offers several compelling environmental benefits for the future of the entire world. Hence, companies can create a sustainable energy-centred future, without polluting and damaging the entire world, but with a number of business opportunities.