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The future is round
We used to think that the world would stop using oil and gas because it would run out of the fuels. Now, it is clear that instead of peak supply, demand will peak and fossil fuels will give way, in the longer term, to renewable sources of energy because of the need to cut greenhouse gas (GHG) emissions to limit the impacts of climate change…
“The energy sector, which for decades has enabled the world economy to grow and prosper, has contributed to the increase in emissions and therefore has a responsibility to reduce them,” says Eni CEO Claudio Descalzi. That means that we must all use energy more efficiently so that we can decouple economic growth from resource use and GHG emissions.
One of the best ways to do this is to apply circular economy principles to the production and consumption of energy. The circular economy focuses on recovering, reusing and recycling materials to reduce waste.
A perfect example of this waste is the gas virtually every oil well flares. According to the World Bank, oil production sites around the globe flare billions of cubic meters of natural gas annually. “Flaring gas wastes a valuable energy resource that could be used to support economic growth and progress.
It also contributes to climate change by releasing millions of tons of CO2 to the atmosphere,” the Bank says. Even as renewable energy capacity increases, oil producers can become more efficient by capturing the gas they currently flare and using it onsite or adding it to their production.
New satellite data shows that gas flaring at oil production sites around the world fell by 5 percent in 2017, even though oil production rose by 0.5 percent, with the largest declines seen in Russia, Venezuela and Mexico.
BEYOND ENERGY
“But it will also be necessary to look beyond the energy system,” Descalzi adds. “In wealthy countries, we consume too much of everything: clothing, food, plastics, household appliances, vehicles.
We need to adopt a new model of energy conservation based on a circular economy and way of life – not merely reducing waste, but also decreasing the need for raw materials.”
This involves moving from the current “take, make, waste” linear model of production and consumption to one based on recovering, reusing or recycling materials.
Some of the solutions reside in the energy sector, such as the storage and reuse of energy, a sector that is seeing stellar rates of growth as capacity increases and costs come down.
“The challenge is enormous, but so is the opportunity before us: to save the planet while at the same time creating a new, more inclusive economy along with a whole range of new businesses and jobs as yet unknown” says Descalzi. “We need a different system – one that provides well-being for all but conserves the planet.”