What is the energy transition and why is it important for oil and gas companies?

The energy transition refers to the global shift from traditional fossil fuel-based energy sources, such as oil and gas, to more sustainable and renewable energy sources like solar, wind, hydro, and geothermal power. This transition is driven by the need to address climate change, reduce greenhouse gas emissions, and mitigate the environmental impacts associated with fossil fuel consumption. The energy transition is important for oil and gas companies as it enables them to adapt to changing market dynamics, enhance their sustainability profile, seize new business opportunities, manage risks, and align with investor and stakeholder expectations in an increasingly sustainable and low-carbon future.

What is meant by clean energy?

Clean energy refers to energy sources and technologies that have minimal or no negative impact on the environment. It typically refers to renewable energy sources that can be replenished naturally and do not produce significant greenhouse gas emissions or other pollutants when used. Clean energy is often considered a sustainable alternative to traditional fossil fuels, which are non-renewable and contribute to climate change.

What does net zero energy transition mean?

Net zero energy transition refers to a comprehensive shift in the way energy is produced, consumed, and managed in order to achieve a state where the total greenhouse gas emissions associated with energy use are balanced by the amount of renewable energy generated. The goal of a net zero energy transition is to eliminate or offset the release of carbon dioxide and other greenhouse gases into the atmosphere, thus contributing to the mitigation of climate change.

What is decarbonization?

Decarbonization refers to the process of reducing or eliminating carbon dioxide (CO2) emissions from various sectors of the economy, such as energy generation, transportation, industry, and agriculture. The primary goal of decarbonization is to mitigate climate change and its negative impacts by curbing the release of greenhouse gases into the atmosphere. Decarbonization efforts are often part of broader climate change mitigation strategies and are crucial for achieving global climate targets, such as those outlined in the Paris Agreement. By decarbonizing various sectors of the economy, it is possible to transition to a more sustainable and low-carbon future, reducing the negative impacts of climate change and promoting environmental stewardship.