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Behind the Energy Crisis: Fossil Fuel Investment Drops, and Renewables Aren't Ready
It's a long article, and it's not behind a paywall.
MARKETS
Behind the Energy Crisis: Fossil Fuel Investment Drops, and Renewables Aren’t Ready
The transition to cleaner energy sources isn’t far enough along to meet a surge in demand
By Christopher M. Matthews, Collin Eaton and Benoit Faucon
christopher.matthews@wsj.com
https://twitter.com/CollinEatonHC
Collin Eaton at collin.eaton@wsj.com
https://twitter.com/benoitfaucon
benoit.faucon@wsj.com
Oct. 17, 2021 3:09 pm ET
An energy price shock is serving as a reminder of the world’s continued dependency on fossil fuels—even amid efforts to shift to renewable sources of energy.
Demand for oil, coal and natural gas has skyrocketed world-wide in recent weeks as unusual weather conditions and resurgent economies emerging from the pandemic combine to create energy shortages from China to Brazil to the U.K.
The situation has laid bare the fragility of global supplies as countries drive to pivot from fossil fuels to cleaner sources of energy, a shift many investors and governments are trying to accelerate amid concerns about climate change.
The transition figures to be challenging for years to come, energy executives and analysts say, due to a stark reality: While fossil fuel investment is falling, fossil fuels account for most energy—and green energy spending isn’t growing fast enough to fill the gap.
{snip chart that doesn't display correctly}
Demand for power remains robust even as supply chains begin to strain. In some cases, supplies of renewable resources such as wind and hydroelectric power have fallen short of forecasts, further boosting demand for fossil fuels.
The International Energy Agency, a group that advises countries on energy policies, this month projected global oil demand will reach about 99.6 million barrels a day next year, near pre-pandemic levels. It forecasts that coal demand is set to exceed 2019 levels this year and rise somewhat until 2025, though how quickly it falls from there will depend on government actions to phase out the fuel.
{snip}
—Katherine Blunt contributed to this article.
Write to Christopher M. Matthews at christopher.matthews@wsj.com, Collin Eaton at collin.eaton@wsj.com and Benoit Faucon at benoit.faucon@wsj.com
Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the October 18, 2021, print edition as 'Shift to Pivot to Renewables Strains Energy Markets.'
Behind the Energy Crisis: Fossil Fuel Investment Drops, and Renewables Aren’t Ready
The transition to cleaner energy sources isn’t far enough along to meet a surge in demand
By Christopher M. Matthews, Collin Eaton and Benoit Faucon
christopher.matthews@wsj.com
https://twitter.com/CollinEatonHC
Collin Eaton at collin.eaton@wsj.com
https://twitter.com/benoitfaucon
benoit.faucon@wsj.com
Oct. 17, 2021 3:09 pm ET
An energy price shock is serving as a reminder of the world’s continued dependency on fossil fuels—even amid efforts to shift to renewable sources of energy.
Demand for oil, coal and natural gas has skyrocketed world-wide in recent weeks as unusual weather conditions and resurgent economies emerging from the pandemic combine to create energy shortages from China to Brazil to the U.K.
The situation has laid bare the fragility of global supplies as countries drive to pivot from fossil fuels to cleaner sources of energy, a shift many investors and governments are trying to accelerate amid concerns about climate change.
The transition figures to be challenging for years to come, energy executives and analysts say, due to a stark reality: While fossil fuel investment is falling, fossil fuels account for most energy—and green energy spending isn’t growing fast enough to fill the gap.
{snip chart that doesn't display correctly}
Demand for power remains robust even as supply chains begin to strain. In some cases, supplies of renewable resources such as wind and hydroelectric power have fallen short of forecasts, further boosting demand for fossil fuels.
The International Energy Agency, a group that advises countries on energy policies, this month projected global oil demand will reach about 99.6 million barrels a day next year, near pre-pandemic levels. It forecasts that coal demand is set to exceed 2019 levels this year and rise somewhat until 2025, though how quickly it falls from there will depend on government actions to phase out the fuel.
{snip}
—Katherine Blunt contributed to this article.
Write to Christopher M. Matthews at christopher.matthews@wsj.com, Collin Eaton at collin.eaton@wsj.com and Benoit Faucon at benoit.faucon@wsj.com
Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the October 18, 2021, print edition as 'Shift to Pivot to Renewables Strains Energy Markets.'