Rising Of Clean Energy, And Its Impact On Petroleum Industry

IT & Communication , Oil & Gas   |   26th February 2021

U.S. energy comes from five main sources: oil, natural gas, coal, nuclear, renewable or green energy. Entry into the U.S. in 1950 Energy consumption in South America consists mainly of oil and coal. In 2019, almost 70 years later, oil is still #1, natural gas #2, renewal #3, and coal #4. Renewable energy use has steadily increased in recent decades and will be the third-largest energy consumption in the United States in 2019. In short, clean fuel provides strong support. Yes, everything changes and rarely changes. Which countries have the greatest impact on sustainable energy transition? What will the US Energy Park look like in 20 or 30 years? It’s hard to say, but there are a few things to read in this article. 

 

Clean energy is developing

Reducing carbon emissions is at the heart of the green energy movement. Which country produces the most carbon dioxide? Nowhere except China. According to the International Energy Agency, China emits almost twice as much carbon dioxide in its atmosphere as the United States, but in the United States, carbon dioxide is declining slowly. Since peaking in 2000, China’s greenhouse gas emissions have risen rapidly over the same period. How will the United States lead the rise of the clean energy movement?

Electric automobiles are the first choice of a buyer

In 2019, petroleum will account for 91% of the energy used in the transportation sector and 34% of the energy used in the industrial sector. Therefore, the transport industry is most commonly used. Crude oil consumption may decrease due to the proliferation of electric vehicles, the deterioration of the oil, and the emergence of alternative energy sources. General Motors recently announced that General Motors will only produce electric vehicles by 2035. Many other companies are building factories to make electric vehicles. This reduces demand and negatively affects oil producers.

 

Oil companies must readjust

What’s the impact of ExxonMobil and the world’s largest integrated oil and gas company, Chevron CVX? Many oil and gas resources have declined since mid-2014, and epidemics and rapid demand have not ceased since then. First, the company pays difficult dividends. Then, in August 2020, it announced that it would prevent employers from meeting the 401K savings plan. Finally, ExxonMobil and the CEO of Chevron discussed a possible merger in January. It will be one of the largest mergers in history, forming Aramco, the second-largest oil company in the world after Saudi Arabia. They can get stronger together, but will regulators allow it?

There are many merger and bankruptcy processes as the energy sector tries to create new and more profitable business models. The biggest oil companies today may not be pursuing innovation, but they are looking for a variety of clean energy providers. When one company takes over another, the percentage of acquaintances usually increases. 

 

Which countries are positioned to lose?  

To understand which countries may be hurt, we need to cover some facts. According to the US Energy Information Administration, the United States stands at the first position. It is the world’s largest oil producer in 2019, supplying 19% of global supply, followed by Saudi Arabia (12%) and Russia (11%). The United States is also the world’s largest oil consumer in 2018, accounting for 20%, followed by China (14%).  

 

Which countries will be hit hardest by the transition to renewable energy? The most likely are Saudi Arabia, Russia, and Iraq, because they are the largest crude oil exporters. More importantly, in 2019, Saudi Arabia received 68% of its revenue from oil sales, while Russia’s revenue from oil exports was slightly more than 50%. Although the United States is the world’s fourth-largest exporter, it should perform better because its economy is more diversified. But this does not mean there will be no pain. 

 

The US. Energy work: prepare for changes  

What is the US energy work? According to 2019. S. Energy and Employment Report, over 1 in 2018. One million people work in the “fuel” sector in the United States, including drilling and mining; oil refineries; and companies that support coal mining, oil and gas field machinery manufacturing. Oil and gas, these two subsets use 603,000 and 271,000, respectively. Considering that the total number of labor forces is about 150 million, the employment ratio of this department is relatively small. However, this is not comfortable for those affected people. 

 

The global transition to clean energy  

Any transition to the new world to clean energy may not follow the consistent and simultaneous mode from a country to another country. First, there will be differences between countries. Besides, countries that are seriously relying on oil export income, need to replace lost petroleum revenue before conducting such transitions. Oil’s profit motives will of course be the weight. 

 

 What is the impact of weakening demand for oil prices? 

Historically, prices have fallen as supply has stabilized and demand has declined. Are offers the same? We think the supply will decrease as major oil producers have to agree on individual and collective production. Decreasing demand causes the country to reduce production and consequently decrease income. This can be inconsistent as countries share interests with others. Countries with a lot of faith in oil imports can oppose these changes. However, even if global oil consumption and production decline, the decline in supply and demand will not be significantly affected, and oil prices will be able to withstand difficult situations.

 

For people in the oil industry, this is a light of hope. First, oil is used in many areas of everyday life. It is also used in cosmetics, furniture, electronics, agriculture, clothing, and toys, according to the International Association of Oil and Gas Producers.

 

We did not expect the collapse of the oil and gas industry as a whole, but this trend is turning into a livelihood compared to today. 

 

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