ENERGY: Oil and Gas Resilient Despite Energy Transition Momentum: Rystad

The transition to renewable energy is gaining momentum but oil and gas are expected to remain resilient in the near term, according to Rystad Energy.

• The energy transition is fast enough to alter the growth profile of fossil fuels, but not fast enough to deeply disrupt their dominance by 2040.
• Oil demand is projected to peak by the early 2030s, and gas growth will likely slow down towards the end of this decade. Neither fuel is expecting a sharp contraction.
• Alternatives to oil and gas are not yet cost-competitive or scalable with the backbone from transport, petrochemicals and energy services.
• The transition will have significant implications for costs and investments, ultimately leading to lower costs for consumers over time.

Source: Rystad Energy