The Role of Big Oil in Addressing the Climate Crisis

One cannot expect large oil companies to fix much of the climate crisis, as they predominantly rely on lower-grade hydrocarbon sources which release more greenhouse gases. Oil shale and tar sands, two such sources, are seen as critical areas where they could potentially contribute to increased emissions.

Transition in Energy Sources

Significant changes in energy sources have been observed since 2017. Utility-scale wind and solar power have been overwhelmingly cheaper than fossil or nuclear power, leading to a rapid shift towards these renewable energy forms worldwide. This shift presents a specific order of change that could be both challenging and deceptive.

While petroleum peaked around 2018, the exact future trends remain uncertain. Global coal use peaked around 2013 to 2014, showing a consistent decline. The decline of natural gas seemed imminent, but the recent Ukraine-Russia conflict has brought numerous issues to light, including the rising cost and unusability of petroleum for gasoline purposes.

Wind and Solar’s Impact on Petroleum Usage

A surprising aspect of this energy transition is the role of petroleum. Approximately 6% of the world's petroleum is used to fuel power plants, accounting for about 60% of the petroleum that the U.S. imports. This explains why the U.S., which primarily uses coal and natural gas, consumes significantly less petroleum for power generation.

For countries like those in South and Central America, which rely on the imported petroleum for power generation, it is cheaper to ship petroleum than coal or natural gas. Consequently, wind and solar energy have begun to replace the costliest energy sources, thereby reducing the reliance on fossil fuels.

The Urgency of Accelerating Renewable Energy Adoption

Despite the progress, the pace of wind and solar development needs to be accelerated. The urgency of this transition cannot be overstated, as it impacts more than just the environment. Countries that lag behind in wind and solar development risk losing economic competitiveness and missing the largest economic growth spurt in human history.

Take the U.S., for example, where the technology was developed over the last sixty years. It is alarming to see U.S. lagging behind other nations in wind and solar development. This not only affects competitiveness but also cuts the nation out of this significant economic growth.

Global Impact and the Urgency

The impact of increased renewable energy adoption extends beyond just developed nations. In 2019, 58% of the world's solar panels were installed in developing countries, indicating that a substantial portion of solar energy is not merely replacing fossil or nuclear power but also providing electricity to those who couldn’t afford it previously.

Advocating for money-saving technology has been a long-term strategy, recognizing that businesses and industries often avoid cost additions. However, with the decline in energy efficiency costs and the rise of wind and solar, it is time to push for faster adoption. Hand-waving by fossil and nuclear industry advocates is just delaying the inevitable.

We must all strive to accelerate this transition. Doing so will not only benefit the environment but also lead to widespread economic and social benefits, including improving access to energy for billions of people.