You’re not just going to flip one switch off and one switch on and seamlessly shift economies and consumers from coal, gas, and oil to renewable energy. From Tsevetan Paraskova at oilprice.com:
- With natural gas, coal, and oil prices all soaring this summer, it is clear that a successful energy transition will take decades not years
- Some energy transition proponents may have confused Covid energy demand destruction with a change in consumer behavior
- The truth is that an energy transition can only occur when clean energy can be provided both cheaply and reliably
This year’s global demand for all three fossil fuels has sent a message to overly enthusiastic proponents of the energy transition – hold your horses.
Those who predicted last year the demise of oil, gas, and coal after the pandemic and those who said that peak oil demand was already behind us because lasting changes in consumer behavior would reduce the use of crude are now facing reality.
Global oil demand is just a few months away from reaching pre-pandemic levels, while natural gas and coal demand have already exceeded the 2019 volumes.
Sure, international airline travel is still struggling because of COVID-related travel restrictions in place in many countries. But economies are bouncing back, industries are growing, and the world needs a lot of energy, once again.
Fossil Fuels Support Economic Growth
And fossil fuels continue to supply most of that energy and will do so for years to come. Last year’s slump in fossil fuel consumption is being erased, and those who expected oil, gas, and coal demand to never return to pre-COVID levels now know they were wrong.