Westwood: ~55% of oil and gas production and ~45% of consumption driven largely by countries without legally binding net zero commitments
Aberdeen, UK, 27th October 2021: New analysis from Westwood Global Energy Group (Westwood), the specialist energy market research and consultancy firm, reveals that ~55% of global oil and gas production and ~45% of consumption (as of 2020) is driven by a handful of countries.
With the exception of Canada, the top oil and gas producers of US, Russia, Saudi Arabia and Iran and the largest consumers including the US, China, Russia, India and Iran all lack legally binding net zero commitments. The analysis highlights the disparity between energy transition ambitions and the need for pledges and policies to turn into legal commitments that can have a meaningful impact. This is further underscored by the reality that the IPCC, BP and the IEA’s net zero outlooks require a ~60% reduction in oil and gas demand to reach net zero.
Source: IEA, BP 2021 Statistical Review, IPCC, Westwood Analysis
Arindam Das, Head of Commercial Advisory at Westwood comments: “Ahead of COP26, we’re potentially at an inflection point – how do nations address the energy trilemma at a global and national level? While Western Europe’s leadership on climate issues is hugely important in driving change, it is the direction of demand for fossil fuels in the Americas and Asia that really matter. There remains considerable uncertainty around the outcome of COP26 and the potential impact on the hydrocarbon industry & its prospects going forward.”
Find out more about Westwood’s energy transition insights and watch its Q4 macro webinar here.
About Westwood Global Energy Group
Every day, organisations throughout the onshore and offshore upstream energy value chain ask strategic, technical and commercial questions and turn to Westwood Global Energy Group for the answers. As trusted advisors to companies in key sectors, Westwood Global Energy Group chooses to focus on areas of the industry traditionally underserved by other players.
The Energy Transition means that businesses are facing both new opportunities and risks in how they operate. We are committed to helping the energy industry navigate the transition successfully, by leveraging our extensive track record in providing actionable insight and advice that businesses, industry bodies and investors have relied upon time and time again. From the depth of our data to the insight from our industry experts, our commercial advisory to our quantitative techniques and databases – we insist on excellence in everything we do.
Westwood Global Energy Group is headquartered in Aberdeen and has offices in London, Houston and Singapore.
Megain Buchan, Aspectus