The session covered the economics of renewable energy, government policies, emerging technologies, and emphasized the importance of evidence-based action to accelerate the transition towards a low-carbon future.
Jared Rystad, CEO of Rystad Energy, compared the complex technology needed in the 1980s to today’s smartphone, illustrating the trend towards leaner, cleaner systems and advancing technology. “The big question is, are we going to see a similar development in the energy system,” he continued.
“The end state of the energy transition will be a new energy system that is not based on fossil fuels but is based on renewable energy. This energy system [will have] zero emission associated with it,” he said.
He added that the new energy system would not only be environmentally clean, but also more efficient, drawing parallels to the media and telecom industry and positing that similar developments in the energy sector can be expected.
Rystad pointed out that the transition to a new energy system will result in a cleaner and more efficient system, with logistics prioritizing emissions reduction and local energy security. By examining different options, he said that emissions and the effect on global warming could be assessed.
“The logic of the energy transition will not be that we are stopping oil, gas or coal now. It will be that we are all competing with oil, gas and coal because we bring in solar, wind, batteries, electric vehicles and other processes in the industry. If you try to stop it, it will only create disruptions,” he added.
Rystad also stressed the importance that policies and regulations have to play in the energy transition.
The session moved to a conversation between Rystad and Montri Rawanchaikul, CEO of PTT Exploration and Production (PTTEP), Thailand’s national E&P company.
Rawanchaikul noted that the focus of the energy industry has been on clean energy and reducing emissions, including the production of gas. However, he noted that there was a significant transition underway in the gas industry as it moves towards new sources of energy, highlighting that gas still has a very significant part to play.
“As a national oil company, our mission is clear, we need to provide energy supply, energy security to the country. Our focus now is to continue to supply energy, particularly the in the form of natural gas. But then with that, we should not stand still we cannot be in the status quo, we have to start thinking about finding a way to invest into some kind of energy transition.”