Showing posts from December, 2016

The Future of Oil - report from The Economist

Today, Dec 1st, Thu, 2016 we had a meeting of The Economist Club and discussed the report 'Breaking the Habit' (link) about future of oil. In Total we had six people attending, all from finance field except myself. Here would like to highlight key points of the discussion:

1. Keep it below 2 C. In December of last year during UN summit on climate change it was agreed that governments would make effort to decrease emissions of CO2 and keep climate change average temperature increase below two degrees celsius.

2. Oil's contribution. Oil consumption accounts for more than half of world energy basket. 46% of it goes to vehicles for transportation

3.  Next conditions shall be be met in order to reach the target below 2C:

A. Investment in natural gas (among the 'cleanest' types of energy): it is a longer terms investment with less ROI compare to oil (that's why investment into oil prevails)

B. Alternative tech: batteries and EVS. The cost of batteries still high and…