Dec 16, 2021
World leaders are doubling down on an energy transition that will rely more heavily on renewable sources of energy as we move closer to key climate commitments.
Investment in the energy transition is well underway, with daily news reports announcing new projects for wind, solar, hydro-generation, battery and other storage technologies, hydrogen, bio-based fuels, and carbon capture and storage.
The reality for energy markets is that the global economy is still largely dependent on oil and natural gas as primary energy sources; renewables need to scale significantly to replace them.
Analysts at S&P Global Platts forecast in their baseline scenario that, despite global efforts to reduce greenhouse gas emissions (GHGs), global oil demand will continue to grow slowly throughout this decade and then plateau just below 115 million b/d of oil between the late 2030s and first half of the 2040s.