The oil and gas industry is banking on carbon capture as its “fix” for climate change. The IEA’s new report dispels that idea and offers real solutions.
The oil and gas sector currently accounts for just 1% of clean energy investment globally. A special report from the International Energy Agency (IEA) released ahead of the COP28 climate summit explores how the fossil fuel industry “can take a more responsible approach and contribute positively to the new energy economy.”
In other words, the fossil fuel industry needs to get on the renewables bandwagon now, and not with large-scale carbon capture. The IEA provides a roadmap in its new report, “The Oil and Gas Industry in Net Zero Transitions.”
Global demand for both oil and gas is set to peak by 2030, if not by 2025. If governments deliver in full on their national energy and climate pledges, demand will fall 45% below today’s level by 2050. In a pathway to reaching net zero emissions by mid-century, which is necessary to keep the goal of limiting global warming to 1.5C within reach, oil and gas use will decline by more than 75% by 2050.
Or, to spell it out in monetary terms, the report’s analysis finds that the current valuation of private oil and gas companies could fall by 25% from $6 trillion today if all national energy and climate goals are reached, and by up to 60% if the world gets on track to limit global warming to 1.5C.
The status quo is impossible
Every oil and gas company’s transition strategy can and should include a plan to reduce emissions from its own operations, asserts the report – yet companies with targets to reduce their emissions account for less than 50% of global oil and gas output.
The IEA also points out that carbon capture can’t be used as a linchpin by the fossil fuel industry to maintain the status quo. If oil and natural gas consumption were to evolve as projected under today’s policy settings, limiting the temperature rise to 1.5C would require an “entirely inconceivable” 32 billion tonnes of carbon captured for utilization or storage by 2050, including 23 billion tonnes via direct air capture.
The amount of electricity needed to power these technologies would be greater than the entire world’s electricity demand today.
IEA executive director Fatih Birol said:
With the world suffering the impacts of a worsening climate crisis, continuing with business as usual is neither socially nor environmentally responsible.
The [oil and gas] industry needs to commit to genuinely helping the world meet its energy needs and climate goals – which means letting go of the illusion that implausibly large amounts of carbon capture are the solution.
How to be part of the solution
The report finds that the oil and gas sector is well placed to scale up some crucial technologies for transitions to clean energy, such as offshore wind and geothermal energy. It’s going to have to change tack in many other aspects of its business, too. It needs to increase investment in EV charging facilities – turn the gas stations into EV stations. The sector can also move further into the plastics recycling industry as global bans on plastic continue to grow.
Further, the production, transport, and processing of oil and gas results in nearly 15% of global energy-related emissions – equal to the US’s entire energy-related emissions. The fossil fuel industry’s emissions must decline by 60% by 2030 to limit global warming to 1.5C by 2050. The emissions intensity of oil and gas producers with the highest emissions is currently five to 10 times above those with the lowest, showing the vast potential for improvements. So it needs to boost efficiency and electrify its facilities across the sector.
Reducing emissions from methane, which accounts for half of the total emissions from oil and gas operations, would also provide a big win, as methane reduction strategies are well-known and inexpensive.
The oil and gas industry invested around $20 billion in clean energy in 2022, or roughly 2.5% of its total capital spending. It can and must do a lot better. To align with the Paris Agreement, the IEA says, it must put 50% of its capital expenditures towards clean energy projects by 2030, on top of the investment required to reduce emissions from its operations.
Not only is it imperative that the fossil fuel sector shifts gears to limit global warming – it’s also good business.
Photo: “Coal power plant” by eutrophication&hypoxia is licensed under CC BY 2.0.
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US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC on November 13, 2024.
Allison Robbert | AFP | Getty Images
President-elect Donald Trump on Saturday selected Liberty Energy CEO Chris Wright to serve as the next energy secretary of the United States.
Liberty Energy is an oilfield services company headquartered in Denver with a $2.7 billion market capitalization. The company’s stock gained nearly 9% on Nov. 6 after Trump won the U.S. presidential election, but its shares have since pulled back.
Wright serves on the board of Oklo, a nuclear power startup backed by OpenAI CEO Sam Altman that is developing micro reactors.
Wright will also serve on Trump’s Council of National Energy, the president-elect said Saturday. The council will be led by Trump’s pick for Interior Secretary, North Dakota Gov. Doug Burgum.
Wright has denied that climate change presents a global crisis that needs to be addressed through a transition away from fossil fuels.
“There is no climate crisis and we’re not in the midst of an energy transition either,” Wright said in a video posted on his LinkedIn page last year. “Humans and all complex life on earth is simply impossible without carbon dioxide. Hence the term carbon pollution is outrageous.”
“There is no such thing as clean energy or dirty energy,” Wright said. “All energy sources have impacts on the world both positive and negative.”
Trump described Wright as a “leading technologist and entrepreneur in the energy sector.”
“He has worked in Nuclear, Solar, Geothermal, and Oil and Gas,” the president-elect said in a statement Saturday.
“Most significantly, Chris was one of the pioneers who helped launch the American Shale Revolution that fueled American Energy Independence, and transformed the Global Energy Markets and Geopolitics,” Trump said.
The U.S. has produced more crude oil than any other country in history, including Russia and Saudi Arabia, since 2018, according to the Energy Information Administration.
Kubota says its new KATR farm tractor concept raises the bar in autonomous, zero-emission farming – and it looks like they’ve convinced others, too. The robot just won “Best of Innovation” at the CES Innovation Awards.
Built as a follow-up to last year’s New Agri Concept electric autonomous farm tractor, the new Kubota KATR is a first of its kind, compact, four-wheeled robot with a stable cargo deck platform and stability control features that allow it to conduct work in demanding off-road agricultural and construction work environments, even on extreme hills and slopes.
The KATR was named best in the Industrial Equipment and Machinery product category by a panel of industry expert judges, including media, designers, and engineers who reviewed submissions based on innovation, engineering, aesthetics, and design.
Kubota seems pretty proud of themselves – and rightly so. “We have a long-standing philosophy that our products must be technically excellent, be productive and enjoyable for our customers, and also ensure the sustainability of limited resources. Ultimately, our goal is to improve the quality of life for individuals and society,” said Brett McMickell, Kubota North America Chief Technology Officer. “Given the versatility of the KATR, it has a wide range of applications specifically designed to enhance productivity in the agriculture and construction sectors.”
The KATR is designed to be powertrain agnostic – meaning it can be configured with either an electric or combustion engine, “reflecting Kubota’s commitment to customer choice without compromise.” As shown, it offers a load capacity of approx. 285 lbs. (just under 130 kg) and can be operated either remotely or with an onboard controller.
The CES Innovation Awards program is owned and produced by CTA, the host and organizer of the Consumer Electronics Show (CES), which is recognized worldwide for its innovation awards as it is the most influential tech event on a global stage. CES 2025 is set to run from January 7-10, 2025, in Las Vegas, Nevada – and, of course, we’ll be there (again).
Electrek’s Take
Population growth, while slowing, is still very much a thing that is happening – and fewer and fewer people seem to be willing to do the work of growing the food that more and more people need to eat and live.
We got to ride a pre-production model of a striking new e-bike/e-moped, the Owlet One, with lots of power in a small package.
We first met Owlet at Electrify Expo in Long Beach, CA, where we only had a couple minutes on its bike. But since the company is headquartered nearby in Los Angeles, they emailed us asking if we’d like a longer test ride, and delivered a bike to us for to spend a few hours on this time.
Just to set the stage for this ride: Owlet is a new brand, preparing to ship its first bike. So to start off, we rode a prototype, not the finished version. This means it may come with different features, and we’re not entirely sure when it will ship, either.
The first thing to notice about the Owlet One is its design, which certainly stands out immediately. The bike is made of aviation-grade aluminum, though is still quite hefty, tipping the scales at 84 lbs (but it felt even heavier in our hands).
On top of Owlet’s striking design, the bike is also somewhat of a unique shape and size. Despite offering a format that looks similar to an e-bike at first glance, it rides more like a small moped. This actually puts its 84lb weight into a different perspective – rather than being heavy for a bike, it can be thought of as light for a moped.
But photographs can’t encapsulate everything about the design of the Owlet, because it has one totally unique feature: an adjustable wheelbase.
This can be done by one person in under a minute, though requires a socket wrench and a small amount of elbow grease.
In practice, I found that the adjustable wheelbase probably won’t come up much for riding purposes. The longest wheelbase (or close to it) was the most comfortable and stable to me, and shorter wheelbases were a bit more of a novelty, especially on this powerful bike which can get a little squirrelly on the shorter settings.
Another issue is that it changes the angle of the kickstand, which means you can’t really use the kickstand outside of a narrow wheelbase range. The final bike will supposedly have a different kickstand design, but this will likely be an issue regardless of how it’s redesigned.
But it was good for making the bike small enough to fit into places you might not normally be able to fit a moped-style bike. Between its narrow handlebars and shrunk down to its smallest 44-inch-long setting, it fit into the back of both a Tesla Model Y and an Audi A3 wagon (both with seats down), but not quite into a Model 3 – which I’ve fit multiple normal-sized bikes into the back of, though with the front wheel removed. Though its hefty weight does mean it can be awkward to lift the bike in there in the first place.
And it’s got more power than you’d expect out of most e-bikes too. With a 750W motor (3000W peak), there’s plenty of get up and go, and plenty to keep you going even as you reach closer to its 30mph top speed. This top speed can be lowered through the bike’s computer, to fit your local regulations.
Speaking of regulations, the bike is officially categorized as a motorized scooter, rather than an actual e-bike, as it doesn’t have pedals. It’s in a similar category to electric kick scooters, so you need to have any class of driver’s license to ride it, though it can be used either on or off public roads (but check your area’s regulations for sidewalk use, helmet requirements, and so on).
The shrouding on the front fork does restrict turning radius, but only when walking the bike in tight corners
The throttle we tested was a thumb throttle, though we would have preferred a twist throttle. The thumb throttle is just too twitchy, and on a bike with such peaky acceleration, it could get jumpy. This was especially true with shorter wheelbase settings. Owlet says there will be an option for a twist throttle when the bike ships, but we’d also like to see the software moderate acceleration on the very low end even with the thumb throttle.
And the bike is fully throttle-driven – there are no pedals, only pegs. Owlet plans to offer an option for pegs attached to the front to allow a different, more laid-back seating position.
The motor, kickstand and pegs. This is the final wheel design, rather than the traditional spoked design in Owlet’s press photos above
I tested the bike with a few accessories I had laying around, but because of the Owlet’s unique design, not all of them would fit (the handlebar cupholder seen in some of my photos doesn’t come with the bike, for example, which has no bottle cage mount). You’ll probably want a backpack if you’re planning to carry things on this bike, rather than saddlebags or the like.
The bike’s owl-like headlights fit well with the brand name. The charging outlet is in the “beak”
Owlet says the bike’s 1500Wh battery (made with 2170-format cells) can take you around 40-60 miles, and comes with a 350W charger for a ~5 hour charge. Based on our test ride, we think this range is reasonable or perhaps even conservative – but I’m also a pretty lightweight rider at 155lbs, and always remember that e-bike ranges vary widely depending on terrain and rider.
The seat has a very cool look to it and is comfortable to sit on, partially due to integrated seat suspension. The front fork also has 3.5 inches of suspension travel. I’d have liked for both suspensions to be a little looser, but that is again likely due to my relatively light weight.
All of this comes with a caveat: we rode a prototype here, not a final bike. So the bike was missing some final features, some features weren’t working (like the headlight), and so on. Owlet says that specifically the LCD and foot stands will be changed, but we imagine other tweaks are possible (we hope one of the LCD changes makes it easier to read with polarized sunglasses – it was a bit tough, which is true of many, but not all, bike computer screens).
Owlet also has plans for a future bike, the Owlet 2, which is more solidly in the moped category, with a less wild design and higher range and top speed. Owlet shared an early prototype fact sheet with us, but given the One is already a bit of a ways out from delivery, don’t hold your breath for the 2 yet.
In short, the Owlet is a fun, quirky ride with a very design-forward ethos. If you’re looking for a bike that doesn’t look like any other, it could be worth looking into. Though it’s definitely on the unorthodox side and you have to be willing to accept its eccentricities when compared to more conventional two-wheeled devices.
The company is taking $50 refundable deposits for its bike, which it has said it wants to ship around March – but it also says that it’s waiting for a minimum batch quantity of preorders first, and that shipments would take 3-6 months after that, so we imagine March could be optimistic. If you want to get in line, you can reserve one here.
The bike will cost $3,995, though early reservers can get it for $2,995, along with an engraved serial number and a 1 year warranty/service package. Owlet wants to have service locations around LA and possibly one in New York, to begin with. It will distribute the bikes by shipping them directly to customers.
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