HUNGER FOR OIL AMID THE QUEST FOR RENEWABLE ENERGY

ENERGY and green transition have taken centre stage at numerous conclaves since the adoption of the Paris Agreement in 2015.

- RANJAN TANDON

A rise in world population and disposable income has fuelled demand for energy. Growth in global energy consumption has averaged one percent per year for the last five decades. This led to the adoption of advanced exploration and production (E&P) technology, which facilitated higher output and efficiency. As numerous oil and gas facilities age worldwide, scores of virgin territories have been accessed for exploration. This, despite the increase in initiatives towards reducing inveterate dependence on fossil fuels to ensure a healthier future.

Huge potential exists in the world’s renewable energy resources, but the cost of harnessing or ‘capturing’ such energy entails high initial costs. The recent announcement of the Global Biofuels Alliance at the G20 is an optimistic attempt to intersect the relentless growth in fossil fuel consumption and the soft launch of a green revolution in the hydrocarbon industry. Biofuels are no doubt environmentally benign. Their lower energy density and the price of raw materials makes them more expensive to produce. Blending has its constraints beyond just the price of oil, as higher the biofuel content, the lower the energy density and resultant energy efficiency, translating to higher fuel consumption.