With over a decade of experience spanning Türkiye, Azerbaijan, and the United Arab Emirates, Ibrahimov joined SOCAR Türkiye in 2017 as Petrochemicals Commercial Group Director, subsequently assuming key managerial roles across petrochemicals, refinery, and holding headquarters.

Fuad Ibrahimov’s visionary approach and commitment to excellence have propelled SOCAR Türkiye towards achieving its goals in the dynamic energy market. As a key figure in the industry, Ibrahimov’s insights and direction shape the future trajectory of SOCAR Türkiye’s gas business, making him an indispensable asset to the company.

International Finance caught up with Fuad Ibrahimov, who shared his thoughts about SOCAR Türkiye’s natural gas operations, activities undertaken by SOCAR Türkiye, technological advancements and investments made on the gas side, and much more.

Could you provide details regarding the activities undertaken by the SOCAR Türkiye Natural Gas Business Unit?

Within our SOCAR Türkiye Natural Gas Business Unit, we not only offer gas distribution services through our group companies, Bursagaz and Kayserigaz, but also collaborate with SOCAR Enerji Ticaret, which is actively involved in providing services related to the supply, trade, and wholesale of gas and electricity. Our gas portfolio constitutes 6% of Türkiye’s overall consumption, establishing it as one of the most substantial private sector gas portfolios in the country. In the wholesale markets for both electricity and gas, we stand as one of the prominent private sector players in Türkiye. The year 2023 held special significance for us. As SOCAR Türkiye, the largest integrated industrial group in Türkiye, we marked the 15th year of our journey. We also celebrated the 20th anniversary of our group companies, Bursagaz and Kayserigaz.

We operate with the vision of being the preferred energy solution partner for our customers. For years, we have been providing electricity not only to customers within our portfolio but also to our group companies. This year, our electricity end-consumer portfolio volume reached 300 MW, and with our trading transactions, it expanded to 550 MW. Beyond gas and electricity supply, our solution partnership encompasses a diverse array of services, including gas and electricity products, sustainable solutions, green energy initiatives, and rooftop solar panel services meticulously developed with a focus on meeting the specific needs of our customers.

We are currently redesigning our Bursagaz and Kayserigaz Customer Service Centres, Call Centre, and websites to enhance efficiency and user-friendliness. In the prestigious Türkiye Customer Experience Awards, held in September, we were honoured to receive the silver award in the “Best Customer Services” category, recognising our dedicated efforts in enhancing the customer experience. Furthermore, the SOCAR Türkiye Gas Business Unit received two awards from international organisations.

At SOCAR Türkiye, we recognise that our most valuable asset is our employees. Aligned with our motto “Together, We Are Strong,” we have embraced an integrated and technology-oriented management model to optimise and sustain our business operations. With the implementation of our new business model and robust technological support, we have been able to achieve more efficient results right from the outset. Throughout these accomplishments, we have consistently prioritised occupational health and safety, placing it at the core of all our activities.

Could you provide insights into the plans that Kayserigaz and Bursagaz have for the upcoming year? Additionally, are there any new investments planned?

Kayseri and Bursa, being pivotal industrial centres in our country, are highly coveted cities, drawing significant investment and migration. Presently, we provide services to around 2 million subscribers in Bursa and Kayseri. In both cities, our network investments are ongoing at an intensive pace, and our subscriber numbers are increasing day by day.

In Bursa, we have undertaken new investments aimed at optimising our high-pressure gas network within the city, thereby enhancing the security of our supply. In Kayseri, we have devised an investment plan with the goal of extending gas supply to all 16 districts within our licensed area by the end of 2024.

Furthermore, we have planned the construction of new city entry stations to address the additional investment requirements of districts currently utilising gas, thereby reinforcing the security of our gas supply. In the upcoming period, our objective is to sustain our advancements and enhance business continuity and efficiency through the digitalisation of our processes.

Through a dedicated focus on solution orientation and efficiency in our customer interactions, we are committed to advancing our service quality and swiftly adapting to the evolving customer needs within our sector. Our strategy revolves around ensuring end-to-end satisfaction for our customers.

Can you elaborate on the technological advancements and investments made on the gas side?

Similar to all group companies of SOCAR Türkiye, digitalisation remains a focal point and holds paramount importance at both Bursagaz and Kayserigaz. The mobile applications we have launched on the gas side expedite and streamline not only our internal processes but also those of our customers. As an example, the “iTesisat” project we initiated enables the comprehensive management of all field activities related to internal installations through our integrated mobile application. Our proprietary application, utilised by Customer Services, Customer Solution Centre, and Call Centre, has successfully reduced call centre talk and resolution times by 50%, streamlining end-to-end processes. We have upgraded our industrial SCADA solution, enabling the visual monitoring and control of all our underground investments in the gas distribution process, to the latest and most secure version through a technical update. This upgrade has enhanced its resilience in critical aspects, including security, accessibility, and business continuity.

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Wars, revolutions, famines, droughts, strikes, political instability, recessions, depressions, inflation, deflation, large industry bankruptcies, and supply and demand swings can plummet stock prices.

Some huge hedge funds and private equity firms with excessive debt from stock market investments have had to sell assets in a dropping market to pay off margin calls. These large-lot sales also affect stock prices.

S&P Global found that rapid oil price movements affected the most volatile market sectors in the 2010s (December 31, 2009–December 31, 2019). Here are the top eight sectors with the largest standard deviations, in descending order.

Standard deviation assesses an investment’s volatility by calculating its yearly rate of return.

Energy

This sector includes oil, gas, coal, biomass, geothermal, hydrogen, hydroelectric power, ocean energy, solar, and wind energy. Based on Energy Select Sector Index results, this sector had the biggest standard deviation of 20.3% in the 2010s.

The spot price for crude oil fell from USD 113.93 per barrel on April 29, 2011, to USD 88.19 on Sept. 12, 2011.

Commodities

Commodities had the second-highest decade standard deviation at 18.6%. Commodities include natural resources, precious metals, and agricultural products. A commodities exchange-traded fund (ETF) may hold gold, silver, oil, gas, grains, or beef.

Financial

Banks, brokerage firms, financial services, insurance companies, credit card issuers, financial planners, stock exchanges, and commodities exchanges dominate this industry. This sector was very volatile during the 2007-2008 financial crisis and Great Recession. The financial sector standard deviation was 16.8% in the 2010s, the third highest.

Technology

S&P Global’s fourth most volatile sector was technology, with a 14.8% standard deviation. The tech industry offers many products and services. It covers consumer electronics including computers, phones, TVs, and appliances.

The industry supplies hardware, enterprise software, cloud computing, and logistics solutions to enterprises. Famous companies in this industry include Apple, Amazon, Google, and Microsoft.

Customer Choice

The consumer discretionary category trailed technology with a 14.6% standard deviation. This sector includes retailing, media, consumer services, consumer durables, luxury goods, clothes, cars, and auto components. Other consumer discretionary industries include hotels, restaurants, and leisure.

Communication Services

Communication services ranked second with a 14.1% standard deviation in the 2010s. Phone, wireless, cable, data, Internet, equipment, media, and entertainment corporations dominate this sector. Meta, formerly Facebook, Alphabet, Netflix, The Walt Disney Company, and AT&T are in the Communication Services Select Sector Index.

Medical Care

Based on Health Care Select Sector Index results, this sector was 12.4% volatile in the 2010s. This industry includes hospitals, doctors, dentists, medical equipment, suppliers, and vendors. Healthcare investors may invest in pharmaceutical, biotech, health insurance, and pharmacy benefit management companies.

Utilities

Last on our list is utilities, which had an 11.8% standard deviation in the 2010s. Companies in this sector offer water, sewage, energy, dams, and natural gas. Compared to other sectors on this list, utilities are less volatile. This sector’s enterprises are strictly regulated and provide dividends. Utility equities attract long-term investors due to their stability and income.

Small gains are usual for the stock market. Volatility is any up or down divergence in a stock’s price from this trend. Investors fear volatility. Prudent investors seek steady, predictable markets with little volatility and stock price movement.

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During an interaction with Zawya, HE Saad bin Sherida Al Kaabi said, “People talk about renewables as if it’s the ‘fix all’. If you look at renewables, you can generate electricity from wind and solar but you can’t manufacture plastics and things that you have in this room that are all manufactured.”

Kaabi issued a warning that the energy transition plans of governments will deter investment in fossil fuels and cause a natural gas shortage in the following ten years, notably in Europe.

He predicted a significant gas scarcity in the future during the “Energy Minister Outlook” session, mostly because of the rapid energy shift.

He said, “The only thing that saved humanity and Europe this year was the warm winter and the slowdown in the economy around the world. If the economy starts churning in 2024, and you have a reasonable, just a regular winter, I think the worst is yet to come if they don’t realise that and have a proper plan and sit down with producers and oil and gas companies and not demonise them.”

Kaabi further welcomed the G7’s final statement on the need for more LNG for global consumption and pointed out that the demand for gas from the expansion projects in Nordfeld Ost and Nordfeld Sud was very high.

He said Qatar is close to producing 126 million tons by 2026 and stresses the need to carefully consider future energy supply issues in order to achieve economic stability amid the crises some countries around the world are experiencing.

Image Credits: Qatar Government

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Due to a mild winter, countries were able to use less gas from reserves that had been accumulated in preparation for a reduction in supply from Russia, which was Europe’s primary source prior to the war.

Dutch TTF gas surged to a record €345 (USD 368) per megawatt hour in March. In August it rose as high as €342. However, prices have been declining ever since reaching €73, a 50% decrease, which is the lowest cost since before the war on February 21.

Russian energy behemoth Gazprom reported a 55% decrease in gas exports to the European Union and Switzerland last year.

Europe used to be Gazprom’s primary export market, but sanctions enacted in response to Russia’s offensive in Ukraine in 2022 have significantly curtailed supplies.

Gas storage tanks were refilled by European countries, and campaigns were launched to encourage consumers to save on energy during the winter.

European storage levels are at 83%, which decreased the immediate need to purchase additional gas. In an effort to lessen its disproportionate reliance on Russian supplies, the European Union has frantically searched for new natural gas sources.

A mechanism to cap natural gas prices has also been agreed upon by European Union countries, although economists predict it will have a little overall impact on lowering costs for people and companies.

Experts have cautioned that a cold spell could cause gas prices to increase once more.

Vladimir Putin, the president of Russia, might also stir up further turmoil in the markets.

“He could send less gas, but he could also send more to certain destinations in the hope of dividing European countries,” said Thierry Bros, an energy market analyst who teaches at the Sciences Po school in Paris.

Europe will struggle to fill up stocks this summer if it does not receive 30 billion cubic meters of Russian gas, Thierry Bros said.

“Prices risk rising again,” he said.

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A cap was proposed by the European Commission last month, and it would go into effect if the front-month price on the Dutch Title Transfer Facility (TTF) gas hub topped 275 euros (USD 288) for two weeks.

Despite it being designed to cushion European Union countries’ economies from gas price spikes, ICE, which facilitates TTF trading, warned the Commission in a report that the idea might instead raise prices.

The report stated that liquidity providers were likely to buy back short positions and stop selling TTF gas futures if prices climbed to even relatively near the cap level, to cover themselves against the risk of holding short positions when the cap was triggered, a situation in which they would face “no certainty about what they are trading and what their risk is.”

Prices in the TTF market will rise as a result of the shortage of vendors, it claimed.

“Our customer outreach and internal risk assessment suggest that the mere presence of a cap significantly increases the probability of the cap being triggered,” the report said.

After the Association of European Energy Exchanges warned of potential negative implications, European Union energy commissioner Kadri Simson held a video call with officials from energy exchanges to discuss the cap.

Kadri Simson said in a tweet, “The European Union Commission hears the concerns and arguments expressed by the representatives of the European Gas Exchanges. We are aware of them. This is why the proposal includes strong safeguards.”

The safeguards include the possibility of an emergency suspension of the price ceiling by the Commission in the event that it had unfavorable effects, such as threats to financial stability or European gas flows.

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Europe is now trying to wean itself off Russian energy. To handle the resulting scarcity, it has approached OPEC and non-OPEC allies, who have promised to hike production to 432,000 barrels per day in June. The increased output will be enough to meet the EU’s short-term energy demands.

Europe was committed to meeting its climate control targets in the pre-war era. However, many question the continent’s commitment since the European Commission proposed a plan to consider some gas and nuclear energy as “green.” Climate change activists have staunchly opposed this move. This proposal could be law by 2023 if most member states back it. The proposed bill aims to commission 30 gas projects in the EU.

Critics dubbed this move “greenwashing” and warned that the bloc’s bid to become climate-neutral by 2050 is in danger.

The Russian invasion was a catalyst for this sudden shift, which environmental groups might contest legally.

Context
Europe has been taking the moral high ground for the last two decades. European governments are among the first in the world to take proactive steps against climate change. Despite their best efforts, their economy remained dependent on cheap Russian fossil fuel imports. Vladimir Putin used this energy dependency as an economic and political weapon in times of crisis.

Following the invasion of Ukraine, EU leaders decided to phase out Russian energy imports by the end of 2022. The commission said it wanted to REPower the EU by quickening the pace towards clean energy systems. They hoped to increase the utility of hydrogen and biomethane through imports or domestic production. Irrespective of the advertised clean energy movements, renewable energy will only make up 45% of total energy consumption by 2030. Fossil fuel and nuclear energy will still be the primary driver of European nations.

The European Commission’s chief Ursula Von Der Leyen is outspoken about the importance of climate action. Her climate-neutral rhetoric is glorious as she called the European Green Deal “Europe’s man on the moon moment.” She claimed that being the first continent with net-zero emissions is “our European destiny.”

Despite the flamboyant language, the big question is how the EU intends to achieve these goals.

The European Commission has a green investment rulebook to save the planet by 2050- a taxonomy or “a classification system, establishing a list of environmentally sustainable economic activities.”

However, are taxonomical changes sufficient to make gases and nuclear energy green?

Insight
In June, The EU’s executive arm, the European Commission, gave natural gas and nuclear energy the green label. Though they said that some strings remain attached. For example, nuclear power plants could only be classified as green if they manage to dispose of radioactive wastes safely. It is important to note that there isn’t a single permanent disposal site anywhere in the world thus far.

As per the commission, gas plants will be classified as green if they switch to low-carbon or renewable gases like hydrogen or biomass created with renewable energy by 2035.

Mairead McGuiness, the EU commissioner of financial services, denied the allegations claiming there was no “greenwashing” as the institution labeled nuclear and gas as “transitional” energy sources under the proposed plan. She iterated that the European Commission’s credibility is still strong.

Environmental groups are having none of it. They see this as a jeopardy to the EU’s climate neutrality goals. The Climate Action Network Europe said that the European Commission is sacrificing the scientific integrity of the taxonomy for gas and nuclear lobbies. According to environmentalists, the EU plans to redirect finances that would have funded climate-positive investments.

Apart from activists, experts advising the EU have also raised concerns about the environmental impact of these projects.

The nuclear plant initiative is a debated issue in the European parliament with many supporters and dissenters. Some prefer gas to atomic energy.

Germany versus France
The two great leaders of Europe, Germany & France, are at loggerheads on what should be considered “green.”

The French camp heads the pro-nuclear faction because nuclear power plants generate 70% of the electricity in France. The French have the support of Poland, Hungary, the Czech Republic, Bulgaria, Slovakia, and Finland.

France wants to invest in new nuclear plants with small modular reactors. Expert at the Foundation of Strategic Research Think Tank in Paris, Nicola Mazzucchi, supports the French government’s initiatives. He said that automated factories could produce quality reactors cheaply at an industrial level.

Germany has pledged to shut down all plants by 2023. They have been slowly phasing out nuclear energy following the Fukushima disaster in 2011. Denmark, Austria, and Luxembourg are in the German camp, asking where the opposing faction intends to store or dispose of highly radioactive nuclear waste.

In a letter to the European Commission, Germany’s ruling coalition remarked that gas is an interim energy source till renewables and green tech are available. However, German chancellor Olaf Scholz said the taxonomical debate was completely overrated in an EU meeting last year to avoid conflict with France.

A senior fellow at Brussels-based Bruegel Think Tank, Georg Zachmann, who follows the EU’s climate and energy policy, said that the union would not take any steps to prevent France from building new atomic plants.

Zachmann says that the new taxonomy would be the gold standard in the fight against climate change. But he added that no investor would be interested in gas or nuclear plants when the union has so much political capital invested in pushing its member states towards renewable energy.

He also pointed out that onshore wind and solar energy alternatives aren’t very costly in many member states.

The 30 proposed gas projects in the EU will ensure Europe’s economic independence from Russia. For example, the EastMed pipeline project will require billions of euros to build a 1900 km pipeline connecting offshore gas fields to Greece and Italy. The proposed plan contradicts the Paris agreement in 2015, where world leaders pledged to curb global temperature rise to less than two degrees. The ideal temperature rise agreed upon was below 1.5 degrees above pre-industrial temperature by the end of the century.

Methane is 85 times more harmful to the atmosphere than carbon dioxide. The Baltic Pipe project is a pipeline that could conduct Norwegian gas to Poland and develop the Cyprus gas infrastructure. Under the proposed plans, this program could spend 13 billion euros to boost transport, digital infrastructure, and energy. However, climate change activists believe this move will trap the EU in fossil fuel dependency for decades and goes against the principles it has been preaching to the world.

The union cannot build new gas projects under the current system. The EU Commission is acting slyly and exploiting a loophole in EU regulations. Bi-annually a compilation of beneficial energy infrastructure projects is presented to all members. Though EU members cannot build new gas infrastructure, the dossier may contain projects that ensure continuous energy supply and are vital to the continent.

Europe is now flouting the guidelines set by the International Energy Agency and the Intergovernmental Panel on Climate Change which bans the installation of new oil and gas extraction projects to keep global warming below 1.5 degrees above pre-industrial levels.

Conclusion
The European parliament and the 27 EU member states will review the commission’s proposal soon.

The European Commission has opted for a delegated act, a fast-track legislative procedure. A majority in the EU parliament of 20 member states must vote against it to scrap the bill from becoming law.

While the taxonomy is unlikely to be rejected by the EU states (there are substantial economic benefits from fossil fuels during a global financial crisis), many parliamentarians from different political camps are enraged over the proposal to greenwash gas and nuclear energy.

The Greens in the European parliament will fight this bill and try to gather a majority against it. Rasmus Andersen, a Green lawmaker, said the new proposal disappointed him greatly. Joachim Schuster of the German Social Democrats thought the EU parliament would vote to scrap the bill.

Austria and Luxembourg have threatened to sue the European Commission over the altered taxonomy even if the parliament passes the bill.

Meanwhile, the OPEC countries will increasingly cut production shortly. It is a move likely to create an unexpected supply deficit in the coming months. Though this might lead to a bull market for oil traders, it does not bode well for energy importers like India, China, Japan, and the EU.

The time is ticking for Europe. Russia is gearing up for strategic reductions of gas supplies to Europe to increase their leverage in the winter. The pipeline Nord Stream 1 is already running at 40% capacity, with Russia citing technical issues. Many experts are skeptical about these claims.

There are shortfalls in gas supply across Europe, with Italian energy firm Eni stating it has only received half of the anticipated Russian gas supply. Austria and Slovakia have the same complaints. France has not received gas since 15 June, and Denmark, Finland, Netherlands, Bulgaria, and Poland have their supply cut off after these countries refused to buy gas in roubles.

Europe has committed to reaching maximum capacity or at least 80% of gas stocks before November. There is data hinting that it might have reached 55% already.

Before the invasion, Europe bought 40% of its gas from Russia. Now, that share has dropped to 20%. The continent also imports 45% of its coal imports from Russia.

Russia will tactically starve the continent of gas, and Europe might struggle to heat its homes this coming winter. Gas prices are likely to go up, and the EU cannot overlook the possibility of energy rationing.

The European Commission’s Energy Prices Toolbox has been assisting citizens and businesses for a while now. About 25 member states have adopted suggestions from the toolbox, and it is helping 70 million households struggling with the soaring gas prices.

EU is in a tricky spot. It wants to maintain its image as a leader in the fight against climate change while ensuring it does not slip into an energy crisis. The OPEC alliance is temporary and might help out in the short term. But in the long run, Europe must transition from a consumer to a gas producer while accelerating the adoption of renewable energy.

The post Is the EU risking its climate goals to defeat Russia? appeared first on International Finance.

This has made some experts ask the question if this crisis could be the push the world needs to move away from oil. One asked: “Could the coronavirus crisis be the beginning of the end for the oil industry?” Another: “Will the coronavirus kill the oil industry and help save the climate?” In 2020, the annual greenhouse gas emissions declined by 4-7 percent due to the world coming to a standstill and some of the world’s most polluted cities enjoyed clear skies. The idea that a pandemic could help ave the planet misses crucial points. Firstly, damaging the world economy s not the way to deal with climate change. When it comes to oil, we still need to find a suitable replacement. in terms of its availability and fitness for purpose. Although the supply is finite, oil is plentiful and the technology to extract it continues to improve, making it ever-more economic to produce and use. The same is also largely true for natural gas.

Having said all of that, climate change is very real and we are seeing its more clearly than ever. Fossil fuel usage has roughly doubled since 1980, however, in the present day, coal consumption is falling in many parts of the world. Oil and gas usage, on the other hand, is still growing. Data shows that despite alternative energy sources such as renewables have become cheaper comparatively, the share of fossil fuels in the world’s energy mix still remains high compared to a decade ago. According to a report by REN21, fossil fuels’ share in the global energy mix was 80.2 percent in 2019, compared to 80.3 percent in 2009. The report further revealed that renewable energy share in the energy mix has grown to 11.2 percent in 2019 from 8.7 percent in 2009.

In 2019, we witnessed 15 extreme weather events, primarily as a result of climate change and caused more than $1 billion in damage each. . Four of these events each caused more than $10 billion in damage. The large-scale use of fossil fuels tops the list of factors contributing to climate change. But the concentrated energy that they provide has proven hard to replace. Why?

Impact of Covid-19 on fossil fuels
The effect of the Covid-19 pandemic can still be felt and seen all over the world. Natural gas prices in Europe have soared by over 400 percent since the beginning of 2021. Electricity prices have also increased by over 250 percent during the same period. Meanwhile, in the US natural gas price has more than doubled. Natural gas is mostly used for electricity and to generate heat in the UK during the winter season. Furthermore, the price of coal in the US has soared by nearly 400 percent this year to reach $270 per ton. The crisis is as we understand is considerably worse in Europe. Electricity prices in the continent have soared significantly as well. Natural gas prices have surged as well to $30/mm Btu.

This is resulting in inflation which means prices for energy-intensive metals are also increasing. For example, prices of metals such as nickel, steel, silicon have increased due to the energy crisis. Besides metals, prices of fertilizers have ramped past 2008 record highs to nearly $1,000 a ton. It is noteworthy that the prices were around the $300 to $450/ton mark in the last couple of years. The price for copper too has increased to a record high of $4.50 per pound. Copper is an important metal and raw material for the solar or wind energy industry, which emphasis is growing day by day as and is seen as an important factor to tackle climate change.

In Britain, renewable power production this year was much lower than normal as a result of a windless summer. The region meets around 24 percent of its energy needs through the wind. However, due to low production this year, it means the UK has to rely on coal. Over the years, Britain has transitioned away from coal as an electricity source. Prime Minister Boris Johnson said that the UK remains committed to wind power generation. He went on to say that he wants the UK to become the ‘Saudi Arabia of wind power’ with offshore wind farms generating enough electricity to power every home in the UK in the next 10 years.

However, the landscape is pretty different in the present time. Soaring electricity prices is a matter of growing concern for politicians across Europe. The crunch in the gas market is forcing countries to revert to coal. This goes against Europe’s fight against climate change and the fact that the UK hosted the 2021 United Nations Climate Change Conference, more commonly referred to as COP26 at the SEC Centre in Glasgow.

In Asia, thermal coal prices also keep hitting record highs. In short, there isn’t enough coal to meet demand. Economies in the region are slowly resuming activities and are in the process of an economic revival, be it China, Malaysia or India. It has led to greater demand and is one of the primary causes of an emerging electricity crisis in China. Coal stockpiles are running low in India too, however, the government claimed there are enough stockpiles to keep the wheels running.

Climate change & fossil fuels
During the beginning of winter in 2021, the northern hemisphere witnessed a series of very cold and extreme weather events. If the same trend is seen happening next year, the northern hemisphere witnessed a series of very cold and extreme weather events. In order to deal with climate change, we must start by understanding the fossil fuel system, how energy is produced and used. While there is no denying that fossil fuel companies are immensely powerful, in the United States and around the world, their lobbying prowess is not the key reason that their fuels dominate the global energy system. Similarly, the transition to an all-renewable energy state is not a simple task to say the least. As we have seen during the 2020 Presidential elections, the politics of blame is quite popular. For years now, fossil fuel companies have denied the problem to policymakers reluctant to enact the policies needed to force real change. It has been easier for everyone to stick with the status quo.

Since we are standing at a critical juncture of climate change, what we need is technology and strong policy to move in a new direction. Throughout history, humanity’s energy use has moved toward more concentrated, convenient, and flexible forms of energy. By understanding the advantages of current energy sources and the history of past transitions, it can help us understand how to move toward low-carbon energy sources. With a greater understanding of the climate challenge, we are making huge strides in developing the technology we need to move toward a low-carbon future. Still, understanding how we got here and why the modern world was built on fossil fuels is crucial to understanding where we go from here.

Bio-based energy system
Prior to the technological revolution, solar energy met all our needs. This balance between human energy use and sunlight sounds like a utopia, but as the human population grew and became more urban, the bio-based energy system brought problems. This is when fossil fuels opened new doors and options. First coal, then oil and natural gas allowed rapid growth in industrial processes, agriculture, and transportation. The world today is unrecognizable from that of the early 19th century before fossil fuels came into wide use. Along with this, human health and welfare have improved immensely, and the global population has increased from 1 billion in 1800 to almost 8 billion today. The fossil fuel energy system is the lifeblood of the modern economy. Fossil fuels powered the industrial revolution, pulled millions out of poverty, and shaped the modern world.

Greatest challenge to humanity
While fossil fuels helped us advance our technologies and society, the world slowly understood the huge disadvantages it comes with. Currently, we understand the devastating effects of Co2 has had on Earth. As a result of the release of these gases, along with the massive deforestation, burning fossil fuels is warming our planet faster than anything we have seen in the geological record. One of the greatest challenges facing humanity today is slowing this warming before it changes our world beyond recognition.

With eight billion of us present on the planet, the impact of Co2 is being clearly witnessed. But going back to the old ways and relying on biomass for our energy needs is clearly not a solution. But, we still have to find a solution to get back to reliance on real-time solar flows and perhaps nuclear energy to meet our needs. While there are a lot more of us now, compared to a century earlier, we are also a part of a vastly larger and more integrated global economy, and using much more energy. But we also have technologies today that are much more efficient than photosynthesis at transforming solar flows to useful energy.

Alternatively, wind turbines and solar photovoltaic (PV) cells convert solar energy flows into electricity, in a process much more efficient than burning biomass, the pre-industrial way of capturing solar energy. With rising demand, the cost for wind and solar PV have been dropping rapidly and they are now mainstream cost-effective technologies. Some existing forms of generating electricity, mainly nuclear and hydroelectricity, also don’t result in CO2 emissions. Bringing these together presents us with an opportunity to decarbonise or eliminate CO2 emissions from the electricity sector. Electricity generation is an important source of emissions, responsible for 27 percent of U.S. greenhouse gas emissions in 2018.

The post Can the global economy survive without fossil fuels? appeared first on International Finance.

In their statement, the firm had aforesaid that in February, the Sirung-1 exploration well was drilled to a depth of 2,538 meters. Additionally, it said, the discovery of the significant oil and gas column which exceeded 100 meters within the Oligocene to Middle Miocene sandstones validates the potential of the Balingian province and still leaves a remaining prospectus however to be explored.

PTTEP Sarawak Oil, being the operator hold a 59.5 percent stake whereas MOECO Oil (Sarawak) Sdn Bhd holds 25.5 percent. Petronas Carigali Sdn Bhd, a subsidiary of Petronas, holds the remaining 15 percent of the participating internet in Block SK405B. As a result of the Malaysia Bid Round (MBR) in 2015, the PSC was signed in November 2017.

EmEmeliana Rice-Oxley, vice-president of Petronas said, “This came after similar success in an infill well at the D18 field. We are well-positioned to pursue a similar play in the other two neighbouring blocks in the same province, namely Blocks SK411 and SK306. As such, developing this block and other surrounding areas remains an integral part of Petronas and our partners’ long-term growth plans.” She further added that the continued success with their partners keep them inspired and encourage them to look forwards to further explorations. For the MBR 2021, the firm is expected to offer 13 new opportunities in the prolific basins of Malaysia along with fiscal and non-fiscal terms.

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Ishan Abdul Jabbar, Iraq’s Oil Minister addressed the media and said that he expected the contract finalisation before July. This agreement with Total will be focusing on finding the low-carbon industry and is set to produce 1GW of solar energy in the first stage. He also added that the deal is discussed by a specialised team from the oil ministry.

His statements further implied that this agreement is huge and has the possibility of investments exceeding $7 billion. The further conditions including political and administrative decisions for the economic model that protects the rights of both parties are already hammered out.
It is to note that in January, Iraq signed a Memorandum of Understanding (MoU) with Patrick Pouyanne, Chief Executive Officer of Total on capturing natural gas, clean energy and infrastructure. The first report of talks between Iraq and Total was in October last year.

The nation is expecting to sign a deal to build an oil export pipeline from the southern province of Basara to Jordan’s Aqaba port on the Red Sea. The minister assured that a framework agreement might be signed before mid-April. The gasoline and gas and oil imports will be lowered by 50 percent in 2021 and 90 percent in the next year to support power generation. Currently, Iran is the country’s gas supplier and Iraq is trying to diversify imports from Qatar, Kazakhastan and other producers.

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Todd Abrajano, USTDA Chief Operating Officer, Head of Agency, told the media, “This pipeline will become the backbone of Senegal’s domestic gas sector and help create the infrastructure to supply the country’s power plants and transform its energy sector. US companies are eager to partner with Senegal on this opportunity, and we intend to make a meaningful difference in the lives of millions of Senegalese by reducing power generation costs by up to 50 percent.”

The grant from USTDA will help to understand technical specifications of onshore pipeline networks. In addition, the study will analyse the demand for gas and provide economic and financial analysis. It is reported that the project supports the US government’s Power Africa, Prosper Africa Initiatives and USTDA’s US Gas Infrastructure Exports Initiative.

Senegal is investing a lot of effort to make advancements in gas capacity for export and domestic use. The Power Africa Initiative is a partnership between USTDA and USAID. 

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