So far, three different entities have passed comment on the information released by the International Energy Agency in its World Energy Outlook 2013 which was released today in London.
Paul Wootton, head of energy at global law firm Eversheds said, ‘in reinforcing the continued importance of fossil fuels in power generation and the changing axis of consumption in the global economy towards Asia, there is nothing particularly surprising in the report. What is clear, however, is that differentials in electricity prices between countries are continuing to have a dramatic impact on relative competitiveness. For example, the shale gas revolution in the US will enable energy intensive industries to be more competitive, which is likely to lead to increasing exports in sharp contrast to the EU and Japan. As the dramatic structural changes to the global market identified in the report develop, long term energy contracts will become increasingly complex as purchasers and suppliers seek to manage the balance of forward pricing risk between contracting parties.
‘The report also reinforces the increasing importance of renewables deployment and envisages that by 2035 it will approach coal as the most important source of power generation. However, there remain concerns about climate change because despite this increase it is still envisaged that there will be a 20% increase in CO2 emissions over the same period. The report correctly advocates an international climate change agreement to ensure that energy intensive industries in countries that act decisively to limit emissions do not face unequal competition from countries that do not. We need a collective approach to the twin challenges of energy security and climate change, with the competition for capital ever more intense.’
World Energy Council
Christoph Frei, Secretary General of the World Energy Council, commented, ‘coming hard on the heels of the World Energy Congress where we published our explorative scenarios and our energy resource assessment, the launch of the World Energy Outlook adds to the weight of knowledge which highlights that the global energy system is now at a tipping point. Our Jazz and Symphony scenarios see that fossil fuels will remain dominant up to 2050, with between 77% and 59% of the primary energy mix being supplied by coal, oil and gas. This finding is supported by the IEA’s central scenario clearly shows that we need to see a shift in the way we address the triple challenges of the energy trilemma, environment, energy security and energy equity.
‘We urgently need to realise the potential of breakthrough technologies such as electricity storage and CC(U)S. The 450 ppm CO2 goal cannot be achieved without CC(U)S. It is essential, therefore, that there are clear and unambiguous policy and institutional frameworks to support investment in this technology to justify its inclusion in roadmaps and carbon emissions reduction strategies.
‘Demand for energy services continues to rise and the energy map is changing. Our institutions need to change to keep pace with developments if we are to have a sustainable energy future.
‘We must get real in the way we respond to the findings in the World Energy Outlook.’
Greenpeace UK deputy political director, Joss Garman said, ‘this report shows that the world remains on course for dangerous levels of global warming, and that fossil fuel subsidies are rising instead of falling.
‘The IEA highlights the environmental risks as well was the high costs of Arctic oil drilling, and projects that Arctic oil output will remain negligible in all of their scenarios. In a world in which there is action on climate change, three quarters of the world’s untapped oil reserves must stay untouched, leaving no space for Arctic oil.
‘This is just the latest evidence that instead of sending ice breaking to the far north world leaders should focus on saving money and cutting emissions through the world’s huge untapped potential for energy efficiency and by investing in renewable energy. Upgraded fuel economy standards alone can save the projected Arctic oil production 20 times over.’
Edited from various sources by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/12112013/reactions_weo_2013/