In a bold move, Shell has underscored the hesitation of major oil companies to relinquish their reliance on fossil fuels. Despite mounting pressure for greener alternatives, these companies, including Shell, are doubling down on natural gas as a crucial component of the energy transition.
According to Shell’s Energy Transition Strategy, natural gas and liquefied natural gas (LNG) are envisioned as pivotal in replacing coal, particularly in high-temperature heavy industry applications. Shell believes that this transition can help combat local air emissions and address broader climate concerns.
Oil executives, echoing Shell’s stance, argue that fossil fuels currently fulfill roughly 80% of global energy demand, particularly in developing nations. They caution that a sudden reduction in these energy sources could severely impact these regions’ development prospects.
ExxonMobil CEO Darren Woods emphasized this point at the Asia-Pacific Economic Cooperation conference, stating, “We cannot replace overnight an energy system that took 150 years to build.” Woods contends that the core issue lies not with oil and gas themselves, but with emissions. ExxonMobil claims to have halved its operated methane emissions since 2016 and is aiming for a 20-30% reduction in corporate-wide greenhouse gas intensity by 2030.
Woods further asserted, “The solutions to climate change have been too focused on reducing supply. That’s a recipe for human hardship and a poorer world.” ExxonMobil’s stance underscores a broader debate within the energy industry regarding the most effective path towards mitigating climate change.