New analysis from Westwood Global Energy Group (Westwood), the specialist energy market research and consultancy firm, reveals that approximately 55% of global oil and gas production and about 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.
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.”