Can Alternative Energy Effectively Replace Fossil Fuels?

“[T]he International Energy Agency (I.E.A.) projects global energy demand will rise more than 25 percent by 2040, driven by population growth and rising incomes. Even in the I.E.A.’s most aggressive low-carbon scenario, oil and natural gas will meet approximately half of that demand. Chevron has responded by establishing targets for emissions intensity — the amount of pollution created per unit of energy produced — and tying these goals to employees’ pay. Chevron also is lowering its carbon intensity at the lowest cost, increasing its use of renewable energy to support its business and investing in promising technologies.

Reducing greenhouse gas emissions is a global issue that requires global action. We support a price on carbon as a possible way to reduce greenhouse gas emissions by the end user, but governments must decide which pricing system is best for their citizens. We work with governments to address potential climate change risks while continuing to produce affordable, reliable and ever cleaner energy.”

“Reliable and affordable energy is critical to our quality of life, and we will need to responsibly harness all forms of energy if we are to meet growing global demand and simultaneously tackle the challenge of climate change.

The choice is not between fossil fuels and renewable energy, but rather, how do we accelerate the growth of renewables while reducing greenhouse gas emissions from the use of fossil fuels…

Last year, for example, we invested 635 million Canadian dollars to develop and deploy technology in this field, including innovations that could reduce greenhouse gas emissions from operations by up to 80 percent. Our Fort Hills oil sands mine uses paraffinic froth treatment technology to cut the greenhouse gas emissions intensity of each barrel of oil produced there to be on par with the average refined barrel in North America.

We also are investing in energy-efficient cogeneration technology to reduce emissions from burning petroleum coke and export low-carbon power to Alberta’s grid so the province can transition from coal-based power generation. This will reduce greenhouse gas emissions by 2.5 million tons per year, equivalent to removing 550,000 vehicles from the road.”

“The world is on an unsustainable path. We need a faster transition to a low-carbon energy system and a net-zero-emissions world. The last thing I want is a delay today that results in an abrupt, precipitous course-correction tomorrow. What’s good for the world is good for BP…

But a growing, more prosperous world needs growing quantities of energy, and that includes oil and gas. Today, one billion people lack the energy they need, and renewables alone can’t meet those needs. In fact, the International Energy Agency projects the world could still need nearly 70 million barrels of oil a day in 2040 — and that’s in a scenario consistent with the Paris Agreement goal of keeping any rise in global temperatures well below 2 degrees Celsius. Of course, how we use that oil and gas will change. Electric cars don’t burn petroleum, but they do use plastic in their construction and oil in their lubrication. And gas can be decarbonized.”

“Although climate science is calling for the reduction in fossil fuels, I believe the imminent demise of fossil fuels is overstated and the rapid transition to renewable sources of fuels will not solve this existential question. Natural gas is a clean-burning fuel and will be an important part of this energy transition. We will do our part to facilitate this energy transition by promoting natural gas as part of the climate change dialogue and solution.”

“Oil provides 95% of the fuel demands of the transportation sector… Every transport mode – cars, trucks, trains, buses, marine vessels, and aircraft – relies almost entirely on petroleum fuels. Only natural gas liquids and, in recent years as the result of regulated fuel mandates, ethanol – have made small inroads in the dominant share held by oil. Further, on the basis of the projections by all major agencies that analyze energy supply and demand trends to 2035 and 2040, this will continue to be the case for the foreseeable future…

Proponents of the all-renewable future seem to be stuck in a time warp. For them, it is still 2014, oil prices are still close to $130 per barrel, and natural gas and coal prices are surging. In such a world, it may be easier to make the case that renewables will become far more competitive sooner. The reality, of course, is that the decline of international oil prices to the range of $40 per barrel and the dramatic slumps in natural gas and coal prices in many areas (especially North America), has meant that these hydrocarbons are far better placed to compete with alternative energy sources.”

“Today in the U.S. 33 percent of electricity generation is from coal, 33 percent from natural gas and 20 percent nuclear. While rising steadily, only 13 percent is from renewable energy. The decline in the price of renewable energy is indeed worth noting… However, the price of oil and natural gas has also fallen steeply with the use of horizontal drilling and other new technologies which make it difficult for other fuel sources to compete economically, much less totally capture the market…

There has certainly been improvements in renewable energy sources over the last decade. However, the idea that there will be no need for coal or oil in 15 years is simply not believable.”

“So is the solar revolution finally here? Not quite. Even after a decade of rampant growth solar energy still barely moves the needle in the U.S. energy mix. In fact, solar merely equals the amount of electricity that the nation generates by burning natural gas captured from landfills…

The biggest sources are the old standbys. Oil still reigns supreme at 36 quadrillion Btu, natural gas at 26 quads, nuclear 8. Hydropower and biomass bring up the rear at 2.6 and 2.7 quads. Wind is just 1.5 quads. And coal — the great carbon-belching demon of the global energy mix — its contribution is 19 quads. That’s nearly 8 times all the nation’s wind and solar generation combined…

For all the talk of ‘grid parity’ the simple reality is that even combined with far more power generation from natural gas, renewable alternatives will need decades to push out coal. And the irony will be that as demand for coal lessens, it will become cheaper and cheaper, making it even more attractive for the coal-burning power plants that survive the coming cull…

Coal has gotten immensely cleaner over the past generation. And new and better ways will be found to extract energy from coal without sending its dangerous byproducts into the environment. It’s scalable and reliable in ways that renewable energy sources simply aren’t. In short, unless we’re willing to put up with blackouts that freeze grandma in the winter and melt her in the summer, coal will remain a mainstay of U.S. power generation for decades to come.”

“Modern society depends on always available power. If power goes down then society stops. There are no phones, no internet, no ATMs, no refrigeration, no sewage pumps – nothing, and if a large city like London is without power for more than 12 hours rioting and looting would quickly take hold. It is therefore inconceivable not to ensure that we have reliable energy at all times. So an energy plan for the UK must be able to meet demand even on the coldest evening of the year in winter with no wind and no solar. For this reason Renewable energy can never under any realistic scenario meet that target. To imagine that battery prices could fall enough to make wind and solar backup such enormous power demands is simply a delusion.”

“In the next few decades world economies will require hydrocarbon liquids from oil, coal, natural gas, heavy oil, oil sands, and enhanced oil recovery. Sugar cane ethanol is also practical, but volumes will be limited. Other biomass liquids are uncertain. Corn-ethanol is an energy & environmental loser, and cellulosic liquids are not yet practical.”

“Any comprehensive strategy must recognize that our energy challenges have been decades in the making and certainly won’t be resolved overnight. So even as we rightly place a great deal of emphasis on renewable energy and alternative fuels, it is clear that our economy is – and will remain for some time – dependent on fossil energy. We must diversify the available supply of conventional fuels and expand production around the world and here at home– including within a small area of the Arctic National Wildlife Refuge and portions of America’s Outer Continental Shelf – in an environmentally sensitive and efficient manner. Also, we must maintain an adequate liquefied natural gas infrastructure and promote the development of nontraditional fossil fuels like oil shale and oil sands.”