IEA - Oil and gas industry in energy transitions

International Energy Authority’s (pre-coronavirus) analysis of the oil and gas industry shows stranded assets and stranded capital if the COP 2° warming scenario is to be realized. Solutions to global warming ‘cannot be found within today’s oil and gas paradigm’. Carbon capture is a means of mitigating the risks of stranded assets and capital. But CCUS investment is low and decreasing. On the positive side (for the industry) the risk of a mid-term supply shock means that ‘continued investment in existing oil fields, as well as some new ones, remains a necessary part of the energy transition’.