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The Ebb and Flow of Energy

The energy transition is a global necessity to meet carbon standards set by international governments. During this transition, it is essential to understand the use of all appropriate energy styles to ensure the security of our environments, mixed with our essential energy needs.

Some of the more traditional energy providers are still essential as we continue to navigate our way to being carbon neutral. The oil and gas industry gained record profits in 2022, with 4.39 billion metric tons being consumed. Whilst the need for Carbon Net Zero is creating uncertainty regarding the future of oil and gas, the demand for both is still increasing. Companies within this sector will continue to supply traditional energy in the immediate future, but are all looking to transition to clean energy in the next decade. Investment into clean energy by oil and gas companies has risen by an average of 12% a year since 2020 and is expected to account for 5% of oil and gas capital expenditure, which is 2% up from 2020.

However, various factors influence the pace at which oil and gas companies invest in clean energy. Extra bureaucracy, permits and finances for new energy investments remain a genuine hurdle. The relative price of other fuels can also influence how attractive green energy investment can appear, with demand increasing for the more affordable option by consumers. Biofuel production, as an example, relies on the production of grains and other food products. Increased demand for food could mean that there is less to be used for biofuels. As the global population grows, people and our basic needs seem to make the shift to sustainable energy problematic.

Natural gas energy production is now considered an environmentally sustainable economic activity. The EU has clarified that eligible plants with carbon emissions of up to 270g of CO2 per kWh will be considered sustainable. More significantly, firms operating such plants must provide a plan that shows a complete shift from natural gas to renewables or low-carbon fuels by the end of 2035. This is beneficial for companies using natural gas. Not only does it secure a healthy amount of investment in the short term (as long as they comply with the carbon emission limit), it allows gas companies to have a rational plan for the future.

Having a variety of energy sources is the most cost-effective and rational plan. However, there is evidence that surges in weather patterns, such as storms or droughts, will impact the effectiveness of different energy types, such as hydropower. Where there are such fluctuations in renewable energy, traditional sources may need to help compensate, at least in the foreseeable term. This is also an opportunity where even newer styles of energy sources could be considered and developed; areas such as improvements in battery technology and advancements in nuclear fusion. These industries are still in their infancy, but continued development of probable energy sources is essential for the success of energy transition.

Whilst development occurs, oil and gas are still crucial to supply energy during the gaps that are inevitable with current renewable energy. This reassures oil and gas companies in the short term and gives enormous opportunities to invest in research and development that will help them secure their future.

DELTA MOBREY – WORKING WITH ALL ENERGY TYPES

Irrespective of the energy type, the need for robust, accurate and reliable process instrumentation is essential for the secure running of all energy production. The energy industry has been a stalwart of the Delta Mobrey customer base for over 100 years. We have meticulously engineered and manufactured a range of devices to meet the needs of the energy transition.

Delta Mobrey is working with all energy providers to help maintain the energy demand whilst supporting renewable energy production.

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