Climate change and pollution have emerged as major global issues. Many countries have experienced the damage caused by the use of fossil fuels, coal, and other types of filthy energy. Floods, droughts, and the gradual elimination of safe drinking water have become important concerns for many people. The solution has therefore been to transition from dirty to clean energy, which would result in less pollution and carbon entering the planet's atmosphere, oceans, and ground.

Transition to Renewable Energy Will Be Messy

Many industries have presented numerous solutions. Many of the answers, though, will take years to implement. As the world prepares to move from oil and gas to renewables, oil CEOs warn that the transition will be messy for many years. Sharp price volatility in energy is to be expected as supply and demand collide.

The COP26 climate change conference was thus held last November to address the global climate issue that has been plaguing the world. Moreover, the World Petroleum Congress took place in December to discuss the future of gas and oil, as well as to explore new technologies. While delegates at COP26 warned the world about how climate change is affecting the planet and will lead to a disaster, oil executives at the World Petroleum Congress predicted an uncertain future for energy markets.

ConocoPhillips Chief Executive Ryan Lance addressed the panel, stating that the government's proposals to limit investments in new gas, oil, and coal production will neither stop demand nor prevent inflation. Lance remarked that the move from old to new energy sources is being set up to be a chaotic transition owing to pressure on energy producers and new worries regarding the Organization of Petroleum Exporting Countries' spare production capacity.

A Quick Transition Can Leave the Energy Market Unprepared

Subhash Kumar, managing director of India's state-run explorer Oil and Natural Gas Corp, expressed concern about consumers and markets being unprepared to make a quick transition from dirty to clean fuels, echoing Ryan Lance's warning about the messy transition. According to Kumar, there will be unpredictability and disruptions during the shift to clean fuels. During the transition, new energy production projects may be "capex-starved" and unable to proceed.

Many consumers in Asia and Europe have encountered natural gas, coal, and power shortages this year as a result of production declines that have caused prices to skyrocket to multi-year highs.

"Everyone is trying to solve it on the supply side and through the demonization of the producers," stated Mark Little, CEO of Suncor Energy Inc, Canada's second-largest oil producer. The transformation is an extremely massive challenge.

Investing in oil and gas, as well as carbon-cutting technologies, while meeting the demands of investors for higher profits and consumers for a consistent supply, has created a lot of friction in the business. Major oil companies will have to deal with these competing demands.

Fossil Fuels Should Be Seen as Part of the Solution

The tremendous effort to transition away from fossil fuels, which have wreaked havoc on our planet's climate and environment, is also hurting families who are dealing with rising energy prices and high bills. As a result, energy providers must ensure a consistent supply of oil and natural gas as demand rises in the coming years.

John Hess, CEO of Hess Corp, believes that “to have an orderly transition, oil and gas are part of the solution, not the problem.”

As the world moves from fossil fuel to renewable energy, many parts of society will suffer. A slow transition is suggested so that families can prepare for the increase in prices and the lifestyle change.

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