OILPRICE | BP now says it will reduce its oil and gas production by 40 percent by 2030 as part of its pivot to low-carbon operations. But many will wonder why natural gas--the bridge between our fossil fuel present and renewable energy future--is being included on the chopping block. Despite its much lower emissions footprint, natural gas is also under threat not only by the bare fundamentals, but by the trends shaping energy policies.
The EU Green New Deal is perhaps the best example of these trends and their effect on future fossil fuel demand, including natural gas. The deal is pretty ambitious and targets emission reductions of between 50 and 55 percent from 1990 levels by 2030 and 100 percent by 2050. According to Wood Mackenzie analysts led by Massimo Di Odoardo, this will result in the loss of some 45 billion cubic meters of natural gas demand, or 12 percent from current annual demand, by 2040.
To read the full article, click here.