net zero

Renewables/Energy Transition

The Net Zero Energy conundrum


Global energy demand has been rising inexorably for well over 30 years – from around 8 billion tonnes of oil equivalent in the early 1990s to nearly 14 billion tonnes of oil equivalent today.  The rate of increase was 2-3% per annum until 2000 but accelerated to nearer 5% per annum since then as large populations in China and India got wealthier.

North Sea

North Sea industry transition to continue in 2020


The North Sea oil industry has been in transition for some years following the collapse of oil prices in late 2014.  Large cost reductions have been painfully achieved.  Production has increased due to a combination of new fields coming on stream plus a substantial increase in production efficiency to around 75%.  But new field investment expenditure has fallen dramatically since 2015 and exploration remains at a relatively low level reflecting principally the maturity of the province as well as oil and gas prices far below their pre-2015 levels.