A Shifting Finish Line
The energy transition is a marathon, not a sprint. And with every step, the race is actually getting longer. Let me explain what I mean there.
Energy demand will continue to rise because energy consumption is inextricably linked to basic human needs, quality of life, human dignity, and innovation. There is no such thing as a wealthy country that is energy-poor. Yet for those with consistent access to energy resources, it’s easy to take energy for granted. It can feel as natural, necessary, and plentiful as the air that we breathe.
As the world’s population increases, and energy intensity and demand increase along with it, fuel switching will get increasingly more difficult. To pull it off, we need companies capable of delivering solutions at immense scale.
High free-cash-flow (FCF) businesses — aka the world’s largest Oil & Gas companies — have the capability to ramp capital deployment faster than anyone else. It will take an estimated $275 trillion by 2050 to meet the energy demand of the future. That is a mind-boggling sum. But if anyone is capable of taking on a challenge of this scale, it is high FCF businesses. And while they’re doing so, natural gas has the potential to drive carbon emissions reductions more effectively than any other economic fuel on the market today.
Commitment to Change
Do you know what $275T looks like? Neither do I.
The challenge in front of us is monumental in scale and existential in importance. Nothing is more critical than our ability to power the planet, preserve our quality of life, and keep our families safe and warm. And no one is better positioned to lead us to a sustainable energy future than today’s Oil & Gas companies.
It’s one thing to find yourself in the right place at the right time. It’s another thing altogether to take action to become the energy companies the world needs you to be, simultaneously working to meet today’s needs and solve tomorrow’s challenges. Everything I know about this industry suggests they can — and will — rise to the occasion.
Stay tuned for an upcoming piece by our CEO Mike Witte, where he will discuss these companies in more detail: who they are, how they operate, and why they can — and will — rise to the occasion.
