The way we source and use energy is undergoing a fundamental shift, with new and innovative technologies playing a significant role in transitioning from traditional forms of energy such as oil and gas. In this article, we will look at what these new elements of 'new energy' are and how the oil and gas industry is taking part in the emergence of this trend.
The most prominent aspect of new energy has been the rise of renewable sources such as solar, wind, geothermal, hydropower and biomass-based energy. These sources are becoming increasingly popular due to their cost efficiency, scalability and low emissions. As well as being beneficial to the environment, they also provide economic opportunities for communities worldwide.
At the same time, fossil fuels are not going away soon; advancements in horizontal drilling, hydraulic fracturing (fracking) and oil sand production have enabled producers to extract more oil than ever before. This means that many countries will continue to depend on fossil fuels for some time yet – although efforts must be made to ensure the efficient use of these resources so their environmental impact is minimised.
Understanding the potential of ageing assets from existing oil and gas infrastructure is critical in transitioning to new energy. There may be opportunities here for companies looking to expand into other sectors or diversify their portfolios with more sustainable operations. For instance, Microsoft has announced its commitment to become carbon negative by 2030 by investing in a Climate Innovation Fund and purchasing an additional 20 Gigawatts of clean, renewable energy by 2025.
The oil and gas industry is essential in the transition to new energy, with many companies investing significantly in renewable projects. Many of the technologies oil and gas companies use have also been contributed to other sectors. Companies like Shell have invested heavily in converting existing assets, such as North Sea platforms, into green power generators using a combination of solar panels, batteries and reciprocating engines powered by natural gas. In addition, some companies are exploring ways to use their existing infrastructure for purposes beyond providing fuel, such as vehicle charging points or data centres – demonstrating an exciting shift towards the 'new energy' trend.
As we move towards 2023 – or beyond! - it will become increasingly crucial for businesses in all sectors to understand how they can embrace these new trends to remain competitive while helping drive progress towards achieving global sustainability goals. It is an exciting time ahead!
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