Energy Transition: Balancing Renewables and Oil & Gas
Companies, especially those in the oil and gas industry, feel the pressure to adopt lower-carbon energy systems.
While the path to net-zero emissions will require a fundamental shift in how energy is produced and used, oil and gas will still make up a significant share of the energy mix in the coming decades. A balanced approach that combines renewables with oil and gas will be critical during this transition period.
This balance is critical on both ends of the spectrum. Those in the renewable energy sector still rely on backup power from fossil fuels. In contrast, for those in oil and gas, the advantages of off-grid, renewable power solutions are helping them experience the power of microgrids — propelling them forward as industry leaders
At Global Power Supply, we help companies optimize energy operations with cost-effective, sustainable power solutions. These multi-source solutions combine emerging technologies with traditional methods to reduce emissions and improve resiliency.
Here’s how to tackle the collaboration between renewables and oil and gas — and what to consider moving forward.
Renewables Are Crucial Moving Forward, But There Are Still Concerns
Regardless of your industry, electricity demands will surge in the coming decades. Climate change remains a pressing topic concerning advances in energy transition. To address this ongoing and time-sensitive issue, the International Energy Agency (IEA) recommends that governments around the globe triple renewable capacity by 2030. There has been strong momentum recently, with solar and wind power paving the way.
Renewables offer so many benefits. However, the supply-demand equation must be considered, as the intermittency and storage of renewable energy remain top concerns.
Fossil fuels are still essential, as this flexible resource can provide continuous generation 24 hours a day. In other circumstances, oil and gas can be available on standby to provide on-demand power when needed. This advantage combats the intermittent nature of renewable energy. Solar panels will only generate power when the sun is out, and wind turbines only provide power when the wind blows.
Energy storage is the solution to these issues, but the utility-scale technology isn’t quite there yet. Energy storage capacity cannot currently keep up with the desired growth of renewables.
Despite that, smaller-scale operations are already leveraging the possibilities of energy storage. Commercial and industrial battery storage systems are combined with generators to ensure backup power is available at all times, and fuel consumption (and costs) are kept to a minimum by a software controlled and optimized system. These systems are available now and worth exploring.
