RIGHT SO­LU­TIONS

As en­ergy-de­mand con­tin­ues to in­crease, en­ergy se­cu­rity, the un­in­ter­rupted avail­abil­ity of en­ergy sources at an af­ford­able price, be­comes ever more cru­cial. Ex­cerpts of the speech by Shell Down­stream Di­rec­tor John Ab­bott

Oil and Gas - - EXPERT SPEAK -

“Big or small, no coun­try is an en­ergy is­land. We are all af­fected by each other.” Those were the words of Fatih Birol, the ex­ec­u­tive di­rec­tor of the In­ter­na­tional En­ergy Agency, at Sin­ga­pore In­ter­na­tional En­ergy Week. His speech left me think­ing about the chal­lenge we are fac­ing when it comes to en­ergy – in par­tic­u­lar, the need to meet ris­ing de­mand while re­duc­ing emis­sions. Over 37 years work­ing in the en­ergy in­dus­try, I have seen time and time again how the ac­tions and in­ac­tion of in­di­vid­ual coun­tries can have im­pacts that res­onate around the world.

In this sense Dr. Birol is right, the chal­lenge is truly global - no coun­try is an en­ergy is­land. But while the chal­lenge may be global, when it comes to meet­ing it, the so­lu­tions may be very dif­fer­ent in dif­fer­ent parts of the world. That is

cer­tainly true when it comes to the fu­ture of trans­port, and its role in the en­ergy tran­si­tion.

In re­cent months, I have dis­cussed the fu­ture of mo­bil­ity in the UK, Ger­many and China as well as in Sin­ga­pore, to try and gain fur­ther in­sight into how we are tack­ling the tran­si­tion to a lower-car­bon mo­bil­ity sys­tem around the globe.

I have seen first-hand how coun­tries and re­gions are find­ing new and var­ied so­lu­tions and, in some in­stances, dif­fer­ent ways to im­ple­ment the same so­lu­tions. I have learned a lot and it has re­it­er­ated to me that in or­der to meet the goals of the Paris Cli­mate Agree­ment and tackle cli­mate change we will need to learn from one an­other, and im­ple­ment the right so­lu­tions in the right lo­ca­tions.

Dur­ing my con­ver­sa­tions with in­dus­try lead­ers and aca­demics in China, a coun­try that boasts around half the global pro­duc­tion of bat­tery elec­tric ve­hi­cles (BEVs), I heard a pre­dic­tion that close to 98% of cars driven by 2050 would be level 4 au­ton­o­mous ve­hi­cles – mean­ing they would be com­pletely self-driven in con­trolled ar­eas, such as cities.

There was also gen­eral agree­ment that nat­u­ral gas has ob­vi­ous ad­van­tages as a ve­hi­cle fuel in terms of low­er­ing emis­sions and cost. The IEA found that China ac­counted for al­most a third of a global 3% rise in nat­u­ral gas de­mand in 2017. Last year alone 96,000 liq­ue­fied nat­u­ral gas (LNG) trucks were built in China.

Sim­i­larly in Ger­many, Enak Fer­le­mann MP and Par­lia­men­tary State Sec­re­tary for the Fed­eral Min­istry of Trans­port and Dig­i­tal In­fra­struc­ture picked out LNG, along­side Hy­dro­gen, as be­ing cru­cial to the fu­ture of Ger­man mo­bil­ity. The Ger­man gov­ern­ment have an­nounced the first LNG ter­mi­nal in Ger­many and in­tend to con­vert more and more ships to run on LNG.

This will com­ple­ment a net­work of Hy­dro­gen sta­tions and a largely elec­tri­fied rail­way. To­day there are ap­prox­i­mately 50 hy­dro­gen sta­tions in Ger­many and Shell is help­ing, as part of the H2 Mo­bil­ity Part­ner­ship, to com­plete a na­tion­wide net­work of 400 sta­tions by 2023. Mean­while, Fer­le­mann went on to say that Ger­many has also elec­tri­fied 60% of its rail­ways, ac­count­ing for 90% of the jour­neys taken.

Gov­ern­ments around the world are fac­ing the same ques­tion: what should be the fuel of the fu­ture? As we can see from China and Ger­many there won’t be one fuel, but many, and they will be in­tro­duced at dif­fer­ent paces in dif­fer­ent coun­tries.

What works to­day in Lon­don may not work as well in Sin­ga­pore, Bei­jing or Berlin. So­ci­etal needs will, as al­ways, con­tinue to drive gov­ern­men­tal de­ci­sion­mak­ing. De­spite in­creas­ing use of re­new­able en­ergy, oil and gas de­mand con­tin­ues to grow around the world and fos­sil fu­els still ac­count for around 81% of global en­ergy de­mand – as they have for roughly 30 years.

The path­ways to a lower-car­bon fu­ture of trans­port will there­fore be var­ied. While Hy­dro­gen ve­hi­cles de­velop in Ger­many, new low-sul­phur ship­ping fu­els are be­ing in­tro­duced in Sin­ga­pore. With this in mind, it is clear that global col­lab­o­ra­tion will be re­quired. As en­ergy-de­mand con­tin­ues to in­crease, en­ergy se­cu­rity, the un­in­ter­rupted avail­abil­ity of en­ergy sources at an af­ford­able price, be­comes ever more cru­cial.

This is why we must recog­nise that we don’t live on en­ergy is­lands. To­gether we share a goal to meet the aims of the Paris Agree­ment. Yet, we must also re­mem­ber that each coun­try faces chal­lenges unique to their own sit­u­a­tion when at­tempt­ing to do so. By learn­ing from each other and adapt­ing, we can over­come them but we will only do so by work­ing to­gether.

De­spite in­creas­ing use of re­new­able en­ergy, oil and gas de­mand con­tin­ues to grow around the world and fos­sil fu­els still ac­count for around 81% of global en­ergy de­mand – as they have for roughly 30 years

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.