Oil dependence is difficult to decarbonize, but 2022 may become a new inflection point

In 2021, as the climate crisis pushed countries around the world to put decarbonization on the agenda, the International Energy Agency called for an immediate end to new investments in
fossil fuel projects.
But given the world economy's heavy dependence on oil, achieving the decarbonization target is a daunting task
.
However, experts believe that with more investment in carbon capture technologies in wind, solar (000591) and fossil fuel power plants and plants, 2022 has the potential to be a year
of true transformation.

Several major developments in 2021 mark the end of the oil industry

Romain Ioualalen, of the militant group Oil Change International, said: "In 2021, several advances clearly show that there is no future for
the (oil) industry.
”

In May, the International Energy Agency warned that new investments
in fossil fuel projects must be stopped immediately if the world is to achieve net zero carbon emissions by 2050 and have the opportunity to limit global warming to 1.
5 degrees Celsius.

Another important moment in 2021 is the emergence of a coalition of countries at the COP 26 climate summit in Glasgow that has pledged to phase out oil and gas production, although no major oil and gas producers have yet joined the organisation
.
Roman said: "Talking about ending hydrocarbon extraction during international climate summits is no longer taboo
.
"

Fossil fuels – which still account for 80% of energy consumption – have been explicitly blamed for causing climate change, which was not the case when the
Paris climate agreement was reached in 2015.

Recently, due to environmental pressures, oil giant Shell decided to withdraw from the development of the
controversial Cambo field in Scotland.

Fossil fuel dependence remains strong, and the rapid growth of new energy sources is bringing the light

Moez Ajmi, an energy expert at professional services firm EY, said: "We knew a few years ago that crude oil was going to die
.
But in my opinion, the world is still heavily dependent on oil
.
The International Energy Agency also said that oil demand will still rise
.
The group expects oil demand to reach pre-pandemic levels globally next year, at just under 100 million barrels per
day.

As crude oil prices have rebounded over the past few months, oil producers are reaping substantial gains
.
OPEC leader Mohammed Barkindo recently said: "Any claim that the oil and gas industry will be a thing of the past and stop new investments in oil and gas is wrong
.

Patrick Pouyanne, head of French oil company TotalEnergies, said: "I believe this shift is going to happen because people are really aware of it, but it will take time
.
"He thinks the issue is being handled in the wrong
direction.
Instead of focusing on reducing oil, focus on
consumption.

"The demand for fossil fuels will decline as consumers have access to new products such as electric vehicles,"
Pouyanne said.
In the first half of this year, electric vehicles reportedly accounted for 7%
of global car sales.
While this proportion is still small, it is growing rapidly
.

New energy systems are expected to receive more investment, which may be critical in 2022

Experts believe that in 2022, there will be more investment
in carbon capture technology in wind, solar and fossil fuel power plants and plants.

"The views put forward by oil companies and producers are focused on the short term
.
Of course, we are still a long way from a decarbonized economy, but today's investment in the energy system will lead us to that step
.
”

Whatever time the end of oil dependence arrives, industry players are still hesitant to prepare for it as pressure mounts
.
U.
S.
oil giants ExxonMobil and Chevron have long held their guns on their guns but finally announced investments
in the energy transition this year.

Tom Ellacott, senior vice president of enterprise analytics at Wood Mackenzie, an energy research and consulting firm, said: "2022 has the potential to be a year
of true transformation.
Given the growing pressure on the oil industry, it's clear that sitting on the decarbonization field looks like it's not an option
.
"