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Fossil Fuels Get Billions More in Subsidies Than Renewables: IEA
The big headline out of the International Energy Agency’s annual World Energy Outlook Monday is the projection the U.S. will overtake Saudi Arabia in oil output in less than a decade.
The forecast comes as the U.S. has reversed its declining oil production with domestic oil output from Occidental Petroleum OXY +0.05%, Devon EnergyDVN +0.24%, Chesapeake Energy Corp. CHK +0.71% and Southwestern Energy Co.SWN -0.29% and many others.
Just as the U.S. kicked off the oil industry in Pennsylvania more than 100 years ago, it’s a pioneer once again, unleashing vast amounts of oil from fields such as the Eagle Ford of Texas and the Bakken of North Dakota with newer techniques such as horizontal drilling and hydraulic fracturing.
With the potential to deploy these practices to boost oil output around the globe, the push for renewable energy is losing out in the competition for government support.
The same IEA report also said fossil fuels attracted about $523 billion in government subsidies in 2011, up by 30% from 2010. That compares to $88 billion for renewable energy. The heaviest subsidies typically take place in parts of the Middle East and Africa, the study said.
While the IEA projects renewables such as wind and solar will move to the world’s second-largest source of power by 2015, it’s warning that a major shift away from fossil fuels won’t happen in the next 20 years. For environmentalists hoping to cut the world’s output of carbon dioxide in an effort to reduce global warming, this isn’t encouraging.
“Many governments and businesses are clearly in denial over the threat posed by climate change and need to accept that we have to start leaving fossil fuels in the ground rather than dashing to develop new reserves,” said Keith Allott, head of climate change at the WWF U.K.
But with rich short-term returns from the sale of fossil fuel and the developing world demanding more, all signs point to increased oil production for now.
– Steve Gelsi
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just what we need! And the climate situation in 2035?
OPEC sees coal use increasing in coming decades
3 days 6 hours 18 minutes ago
OPEC said that fossil fuels will remain the main energy source in the coming decades with coal’s share growing and oil’s falling.
In its annual World Oil Outlook, the Organization of the Petroleum Exporting Countries also projects that a barrel of benchmark crude will cost USD 155 by 2035 as compared with under USD 100 now.
The report says the use of fossil fuels as a percentage of world energy use will decrease only marginally from 87% now to 82% by 2035.
It says that by then, coal use reaches similar levels as that of oil, with oil’s share having fallen from 35% in 2010 to 27% by 2035.
The report notes there are more coal reserves, mostly in the US, than oil and gas.
http://www.coalguru.com/other_region/opec_sees_coal_use_increasing_in_coming_decades/5158
