Shell: Cleaner Power Lacks Sizzle, Viability

Shell: Cleaner Power Lacks Sizzle, ViabilityShell: Cleaner Power Lacks Sizzle, Viability

There will be at least one home still welcoming fossil fuels in the face of a growing threat from cleaner resources, according to Royal Dutch Shell Plc.

Heavy industry relies on hydrocarbons to generate extremely high temperatures and chemical reactions, according to Mark Quartermain, vice president of crude oil trading and supply at the company, World Oil reported.

"Many processes used in iron, steel, cement and plastics factories cannot be electrified at all, and even if they could be, cannot be done at a viable cost in the foreseeable future," Quartermain said at a conference in Singapore.

A growing body of research is painting a bearish picture for oil beyond the next 20 years, as more electric vehicles hit roads across the globe and engines become more efficient.

Rapid adoption could mean demand peaks by the 2030s, according to Bank of America and BP Plc, a prospect that is likely to worry institutional investors in the energy industry.

On Friday, the International Energy Agency said oil demand from passenger cars will peak in 2020.

Still, some industry watchers have predicted dirtier sources of energy such as crude oil will hold their ground in spite of an expansion in the use of more environmentally friendly machines like EVs. Growth in air travel and petrochemicals will continue to support long-term oil demand and the market may see another supercycle because of underinvestment and a peak in US shale output, Sanford C. Bernstein said this week.

“Energy transition is underway, let’s not put our head in the sand and ignore that, but it will unfold differently in different sectors,” Quartermain said.


Add new comment

Read our comment policy before posting your viewpoints