• About
  • Which Energy Mix is this?
  • Contact
Celebrating our 1,000th edition. The climate news you need
No Result
View All Result
The Energy Mix
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  FEATURED
BREAKING: 40% of Fossil Fuels Now Under Development Must Stay in the Ground May 17, 2022
Rocky Mountain Glaciers ‘Past Tipping Point’, with Some Expected to Vanish by 2030 May 17, 2022
UK Activists Block Russian Oil Tanker From Docking in Essex May 17, 2022
EXCLUSIVE: Bid to Revive Doomed Nova Scotia LNG Project Collides with Germany’s Net-Zero Plans May 16, 2022
3,800 Residents Ordered to Evacuate after Flooding in Hay River, NWT May 16, 2022
Next
Prev
Home Climate News Network

Fossil fuels: Heading down, but not yet out

May 20, 2020
Reading time: 3 minutes
Primary Author: Kieran Cooke

Fossil fuels: Heading down, but not yet out

Taking no chances: Flower power backs up wind energy. Image: By Gustavo Quepón on Unsplash

 

Renewable energy is making rapid inroads into the market, but fossil fuels still wield enormous global influence.

LONDON, 20 May, 2020 – At a casual glance, you could be forgiven for thinking that fossil fuels are here to stay for a long time yet, although not everything on the horizon is rosy.

The world, admittedly, is awash with surplus oil. The use of coal is in sharp decline. The price of gas – in recent years the fuel of choice for an increasing number of power plants around the globe – is falling.

The fossil fuel industry – the main driver behind the growing climate crisis – is undoubtedly going through one of its worst times in decades.

The Covid 19 pandemic has resulted in a severe downturn in the global economy and a sharp drop in demand for energy.

But the fossil fuel industry’s problems, many of them of its own making, were evident well before Covid swept the globe.

At the centre of the sector’s difficulties is over-production, particularly of oil.

Shale tips the scales

In 2010 world crude oil production was running at about 86 million barrels per day (MBPD). This year production is forecast to top 100 MBPD.

Though oil consumption has grown as the global economy has expanded over recent years, production has exceeded demand as utilities and industries, particularly in Europe, China, Japan and South Korea, have become ever more efficient in the way they produce energy.

The big change in the oil market over the past decade has been the rise in US production, brought about by the boom in the shale oil and gas industry.

In 2010 the US was producing just over 5 MBPD. Earlier this year, production was running at more than 13 MBPD. Once a net importer of crude, the US is now the world’s biggest producer – ahead of Saudi Arabia and Russia.

The days when the Organization of the Petroleum Exporting Countries (OPEC) could more or less determine the global oil price by tweaking production levels have long gone: neither the US nor Russia is an OPEC member.

The big producers have argued amongst themselves and have not been able to agree on output levels. Oil prices have fluctuated wildly: in recent weeks they reached an historic low.

“Renewable energy is a cost-effective source of new power that insulates power markets and consumers from volatility”

In the US many shale oil operators who borrowed heavily to fund their operations are threatened with going bust as the price of oil falls well below production costs.

In Saudi Arabia and Russia the dramatic fall in oil revenues is threatening economic crisis – and potential political trouble as well.

Adding further to the problems of the oil and other fossil fuel producers – but at the same time contributing to the well being of the planet – has been the rise of the renewable energy industry.

In 2010 the share of renewables in the global energy mix was 8.6%. Data from the International Renewable Energy Agency (IRENA) indicate that renewables now account for more than 30% of the world’s power supply.

Massive solar and wind operations are being built around the world. Solar heating systems have been installed in millions of homes.

Concerns over a warming world and new regulations governing emissions of climate-changing greenhouse gases have in part driven the rise of renewables; dramatic falls in the price of technologies such as wind and solar have also had a big impact.

Holding on to power

The cost of producing electricity from solar power has dropped by about 80% over the past decade. The cost of wind power and other renewables has also dropped.

“Renewable energy is a cost-effective source of new power that insulates power markets and consumers from volatility”, says IRENA.

The fossil fuel sector is still able to wield immense financial and political clout and those prophesying its demise are likely to be disappointed, in the short term at least.

In the US it looks as though coal, oil and gas companies will qualify for multi-billion dollar payments under revised federal government Covid-19 bailout measures.

The Saudis and the Russians will do everything in their power to protect their fossil fuel industries on which their economies – and power structures – depend.

But big changes are under way. Maybe, just maybe, fossil fuels are in terminal decline. – Climate News Network



in Climate News Network

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

Smoke from wildfires kills thousands annually
Climate News Network

Smoke from wildfires kills thousands annually

September 24, 2021
62
Warming seas cut marine mammals’ survival chances
Climate News Network

Warming seas cut marine mammals’ survival chances

September 13, 2021
37
Earth’s future ‘hinges on UN Glasgow climate talks’
Climate News Network

Earth’s future ‘hinges on UN Glasgow climate talks’

September 10, 2021
26

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Mounting Drought Risk Confronts London, Other World Cities

Mounting Drought Risk Confronts London, Other World Cities

May 19, 2022
127
85,000-Hectare Fort Mac Wildfire Expected to Grow for Days

Six Traumatic Years After ‘The Beast’, Fort McMurray Remains Loyal to Big Oil

May 19, 2022
88
Ontario Contemplates ‘Ultra-Low Carbon’ Super-Agency

Ontario’s New Highway 413 Would Boost Emissions, Bake In ‘Auto-Dependent Sprawl’

May 19, 2022
64

BREAKING: 40% of Fossil Fuels Now Under Development Must Stay in the Ground

May 18, 2022
432
New Congressional Funding, Tax Credit Extensions Create ‘Enabling Conditions for Decarbonization’

ESG Becomes Latest ‘Acronym-Based Outrage’ in U.S. Republicans’ Culture Wars

May 19, 2022
63
‘New New Math’ Means Keeping Even More Fossils in the Ground: McKibben

U.S. Can’t Drill Its Way to Energy Security, Jenkins Warns

May 19, 2022
58

Recent Posts

Newfoundland Offers Suncor $175 Million to Restart Terra Nova Offshore Oilfield

Newfoundland Opens New Round of Offshore Oil Bidding

May 19, 2022
51
Farmers’ Mental Health Strained by Climate-Driven Weather Extremes

Farmers’ Mental Health Strained by Climate-Driven Weather Extremes

May 19, 2022
51
Calgary Company to Supply 180 MWh of Battery Capacity to Alberta Grid

Calgary Company to Supply 180 MWh of Battery Capacity to Alberta Grid

May 19, 2022
56
Customer Demand Pushes U.S. Utilities Toward Solar, Energy Services

Power Sector Giants Promote ‘Fair, Just Transition to Net-Zero’

May 19, 2022
51
https://en.wikipedia.org/wiki/Typhoon_Haiyan

Fossils Liable For Human Rights Violations in Landmark Ruling by Philippines Commission

May 19, 2022
34
Food and Fashion Sectors Lead Widening Spread of Climate Careers

Food and Fashion Sectors Lead Widening Spread of Climate Careers

May 19, 2022
29
Next Post

Hydrogen Tech Producer Looks to Lease Out Low-Cost Production Units

The Energy Mix

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Navigate Site

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Follow Us

No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}

2022 ONTARIO GENERAL ELECTION

KEEP UP WITH ONTARIO’S CLIMATE CHANGE ELECTION

election-checkmark
Get Election Notifications

2022 ONTARIO GENERAL ELECTION

KEEP UP WITH ONTARIO’S CLIMATE CHANGE ELECTION

election-checkmark
Get Election Notifications
The Energy Mix - The climate news you need

2022 ONTARIO GENERAL ELECTION

KEEP UP WITH ONTARIO’S CLIMATE CHANGE ELECTION

election-checkmark
Get Election Notifications

2022 ONTARIO GENERAL ELECTION

KEEP UP WITH ONTARIO’S CLIMATE CHANGE ELECTION

election-checkmark
Get Election Notifications
The Energy Mix - The climate news you need

2022 Ontario General Election

Keep up with Ontario’s Climate Change Election

election-checkmark
GET THE NEWS THAT MATTERS MOST

2022 Ontario General Election

Keep up with Ontario’s Climate Change Election

election-checkmark
GET THE NEWS THAT MATTERS MOST
The Energy Mix - The climate news you need

2022 Ontario General Election

Keep up with Ontario’s Climate Change Election

election-checkmark
GET THE NEWS THAT MATTERS MOST

2022 Ontario General Election

Keep up with Ontario’s Climate Change Election

election-checkmark
GET THE NEWS THAT MATTERS MOST
The Energy Mix - The climate news you need

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?