January 13, 2022
Source: GRIT DAILY ®

Days after the COP26 wrapped, the oil and gas industries were spotlighted, with many environmental activists saying not enough was being done. Some think those energy sources should be scrapped immediately. But while forward progress is being made towards a cleaner future, oil and gas will continue to play a prominent role in the global energy mix for the foreseeable future. 

“We simply cannot transition to 100% renewable energy without investing in oil and gas,” said Jay R. Young, Founder & President of King Operating Corporation and a fourth-generation oil and gas investor. “Our research indicates that the greener we go, the more fossil fuels and rare earth minerals we will use.” 

There is no doubt we will be greener in 10 to 15 years. But, according to experts, any move to going greener is cutting down on drilling and exploration, which decreases supply. Moreover, as demand increases from post-COVID, energy gets more expensive. 

In fact, the International Energy Agency’s “Net Zero” report in May noted that, in 2050, the global oil supply “in the net-zero pathway” would still amount to around 20 million barrels per day. The difference? It will be much more expensive.

We would still be on the road to over $100 a barrel, but it would have taken two more years. The pandemic caused a dramatic change in the demand side, tipping the scale to an energy crisis happening two years early. And the supply chain issue was compounded by COVID.

“The transition might have been slower,” said Young. “But the pandemic brought the entire 25 years of bad energy policies to a boiling point quicker. We now have wars about to be fought over oil and natural gas. Look at Russia with over 100,000 troops.”

This is all affecting people, and, according to Young, it will be more challenging to get support for the green movement. “We need to have a better strategy that invests in oil and gas while still on the path to a green future,” he said. “One that is less costly to average Americans. Funding by the green movement in investment capital ensures that we will not recover over the next five years. We should be aiming to go greener, not purely green.”

So, what do people like Young suggest? “Investing in oil and gas companies now only helps them become greener in the future,” he said. 

For example, Saudi Arabia committed to net-zero emissions by 2060. But they also plan on using oil and gas profits to build world leadership in hydrogen manufacturing. And the data shows that the more we migrate to renewable energy without the supporting energy technologies, we will be using more fossil fuels. Plus, the COP26, the EU consortium, and the Biden administration all admit that natural gas is a “renewable” source required. 

“If we try to eradicate oil and gas to go green, we’ll be left with higher prices and more fossil fuel use,” said Young. “Instead, we should be investing in those essential commodities in a way that enables the world to go greener over time successfully.”

He added, “You can be an advocate for the green movement and still support the oil and gas industry. It’s not an either/or scenario. In fact, it’s likely to help the movement.”

 

Jordi Lippe-McGraw is a News Columnist at Grit Daily. A multi-faceted NYC-based journalist, her work on topics from travel to finance have been featured in the New York Times, WSJ Magazine, TODAY, Conde Nast Traveler, and she has appeared on TODAY and MSNBC for her expertise. Jordi has also traveled to more than 30 countries on all 7 continents and is a certified coach teaching people how to leave the 9-to-5 behind.

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