The Global Energy Show: Navigating Obstacles and Challenges

The global energy show will go on regardless of the obstacles in its path and the challenges it faces worldwide on a specific and general level, such as the climate change conundrum and the current tariff tug-of-war challenges. The climate change woes primarily affect the future of fossil fuels, putting governments in a quandary over pouring further investment in oil and gas plays, given the rise in calls to pivot to renewables and clean energy sources of supply.

Developments in 2024 hammered home the enduring nature of oil, gas, and liquefied natural gas (LNG) projects and the progress made in developing new ones and extending the lifetime of older ones. Once summer came to an end, the winter season, combined with a forecasted rise in demand for sources of energy supply driven by the heating season and anticipated population growth in the future, combined to stoke fears of energy shortages, prompting some countries and companies to take measures to ensure stable production of hydrocarbons not just during the winter months but also in the years to come.

Those fighting to push the climate change agenda to the forefront of global energy policy considerations view such endeavors as attempts to roll back the energy transition progress and backpedal from the disclosed net-zero pledges. However, proponents of the oil and gas uptick argue that taking a step back is needed to look at all available tools and options to strengthen the security of the energy supply while also coming to grips with the remaining double whammy of affordability and sustainability challenges within the energy trilemma conundrum.

Given the complexities interwoven in tackling climate woes alongside growing energy demand on region-specific and global levels, recent moves show that some have already put their foot down on attempts to accelerate fossil fuel phase-out by opting to advocate and engage in further hydrocarbon pursuits while also chasing the low-carbon and green shift in a bid to curb their greenhouse gas (GHG) footprint.

Equinor‘s decision to pour billions into oil and gas over the next ten years is a case in point, which spotlights Norway’s current stand on future hydrocarbon search activities. ExxonMobil‘s stark warning against implementing oil and gas investment curtailment measures serves as another illustration of arguments used to promote the development of more hydrocarbons rather than less, as climate campaigners call for.

In hot pursuit of gas

The offshore energy world has changed a great deal over the past few years, leading to a shift in energy trade dynamics, spurring growth in the merger and acquisition (M&A) appetite, amid a far more pronounced focus on decarbonization moves, the rise of greener innovations, digitalization, AI initiatives, and other low-carbon and clean technologies, paving the way for a transition to a more sustainable energy future.

The wave of offshore hydrocarbon discoveries in 2024 put the spotlight firmly on attempts to boost gas resources. However, this does not mean that oil is now out of the picture, as this is still the fuel that holds the biggest slice of the global energy mix.

Oil price conundrum

Last year, the Organization of the Petroleum Exporting Countries (OPEC) confirmed additional voluntary oil production cuts by OPEC+ countries, which were slated to be gradually phased out monthly from December 1st, 2024. The decision came a couple of months after Haitham Al Ghais, OPEC’s Secretary General, pointed out that oil was set to play a key role in the upcoming years and decades.