BAKU, Azerbaijan, May 3. The industry is embracing nascent technologies like carbon capture, utilization, and storage (CCUS), which, if successful, could allow the industry to continue to produce oil and gas while materially lowering GHG emissions, DBRS Morningstar, the world's fourth largest credit ratings agency, said, Trend reports.
“While non-emitting sources of energy are growing rapidly, replacing O&G materially from the energy mix is a colossal endeavor, requiring a globally coordinated effort. This effort will also require significant capital investment and technological breakthroughs. The industry itself is embracing nascent technologies like carbon capture, utilization, and storage (CCUS), which, if successful, could allow the industry to continue to produce O&G while materially lowering GHG emissions,” reads the report released by DBRS Morningstar.
The agency notes that the outbreak of war in Ukraine has only
complicated the effort, with renewed concerns over energy
security that are weighing heavily on governments' near- to
medium-term GHG emission reduction plans.
“The global energy landscape is transforming, but the pace of change and efforts to navigate the energy transition path are still evolving. While the production and global consumption of oil and natural gas will decline eventually to align with GHG emission reduction targets, when the O&G industry will experience such a sectoral shift to declining demand is open to considerable debate. While transition risks do not have a significant impact on ratings currently, we will continue to monitor the developments with an eye toward identifying any concrete trends that could indicate that there is a structural downward shift in the demand for O&G products.”
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