Presented by:

Oil and Gas Investor

[Editor's note: A version of this story appears in the July 2021 issue of Oil and Gas Investor magazine. Subscribe to the magazine here.]


In recent weeks, we’ve seen our industry pressured in multiple ways to reduce emissions and redouble energy transition efforts. There’s no question we’re in the midst of a major change in the way we produce and use energy, and with our proven ability to innovate, invent and deploy solutions on a global scale, our leadership has never been more important.

When thinking through this era of change, it’s essential to understand a few things. First, it’s not one energy transition. There isn’t a single solution that fits every energy problem. Each region may require a unique approach based on comparative advantages unique to that area.

Second, all energy resources have environmental impacts and technological challenges. Renewables such as wind and solar rely on critical minerals that must be mined, largely are located in geopolitically sensitive areas, and often require the use of fossil fuels to produce and distribute the products around the world. Supply chains, logistics, workforce and scale must be factored into any honest conversation about the energy mix.

Third, we’re already making progress. Switching from coal to natural gas allowed the U.S. to slash emissions 27% since 2005 while simultaneously increasing energy generation by 4%. Because natural gas doesn’t suffer from intermittency issues, any realistic long-term energy strategy should include this fuel as a major element.

Fourth, the nature of the energy transition should not be a shift from one fuel source to another based on ideology but a process of adding new technologies to create a production ecosystem that delivers reliable, resilient, affordable and clean energy. Having an array of options will be an important part of meeting the forecasted growth in energy demand in the coming years.

With that in mind, it’s essential for the energy technology and service sector to bring innovation to vexing energy problems as we have in the past. We helped the U.S. become a net exporter with technologies that drove American oil and gas production to record heights while reducing emissions, boosting efficiency and improving safety.

The challenge ahead of us is real, in part because of equally important goals that are cast as being in conflict. We must meet increasing energy demand to support economic development that raises the standard of living for billions of people around the world. We must also meet the imperative to reduce greenhouse-gas emissions to limit global climate change and mitigate climate-related risks. But these goals can be reached with the ingenuity and inventiveness of our industry.

The men and women of the technology and service sector are advancing on each of these goals. We’re using artificial intelligence, machine learning and data analysis to develop and deploy solutions for carbon capture and storage, remote monitoring to eliminate methane emissions, digital and automation applications that drive efficiency and safety, as well as renewable energy sources such as hydrogen, geothermal and wind. Despite restrictions on capital, many of our companies are investing in research and development to bring promising technologies to market.

If we want to continue building on the progress we’ve made, we need to unite in support of energy policies that give us more options—through technology and the number of energy sources available to us. Smart policy will facilitate economic recovery from the COVID-19 pandemic and mitigate climate risks while allowing us to deliver cleaner, more reliable and affordable energy here and abroad.

Achieving clean energy independence is possible. We should invest research and development funds in an array of technologies, including renewables, batteries and energy efficiency, as well as in ways to make production and use of oil and gas cleaner and safer, such as carbon capture. It also means spending on infrastructure projects to make sure energy supply chains are secure from bad actors.

The energy sector doesn’t need partisan political battles. We’re tackling technical problems with solutions, and we can find those solutions by bringing together diverse perspectives and working collaboratively. Every form of energy has advantages and disadvantages, but the American energy industry is the most advanced in the world and has innovated and adapted throughout its history. This time will be no different.