Renewable Energy Threats Oil and Gas Industry
Fossil fuels have been the dominant source of energy for global economic prosperity for over 150 years and today still accounts for over 86% in global energy mix. The question is what would be its role during the next 2 to 4 decades? There is an on-going debate among various agencies, researchers and academia whether the role of fossil fuels will significantly diminish.
It is quite possible that things might change drastically during the next 2 to 3 decades owing to technology, severe climate change and transformation of our mind-set. In today’s world the speed of technological innovation is measured in seconds compared to decades in the past (comparatively terms).
The innovation in fuel cells, electric cars, NGVs and significant decline in cost of solar and wind power during the last decade turn out to be great challenges for the oil and gas industry. The question is how big a share of fossil fuels will be taken up by renewable sources by 2040? Is this share substantial enough to undermine the role of oil and gas industry?
