Fossil fuels still dominate the global energy mix at 81.5% in 2023, according to the Energy Institute.
“It just goes to show how difficult it is to change the energy mix. That’s not because companies aren’t making their efforts and progress isn’t being made. It’s because it takes time,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes, a global energy technology company.
Speaking on stage during a CNBC-moderated panel discussion at the Adipec energy conference in Abu Dhabi, Simonelli said Baker Hughes managed to decrease its emissions by 28.3% by implementing new technologies and efficiencies.
Takayuki Ueda, the representative director president and CEO of INPEX, a Japanese oil company, reiterated technology’s role in the energy transition.
“What is important at this moment is to reduce the carbon dioxide from the natural gas itself by using a lot of technology such as carbon capture and storage,” Ueda said.
Energy companies have been leaning on gas as a “reliable dispatch of power” to meet demand, said Maví Zingoni, CEO of Power at GE Vernova, an energy equipment manufacturing and services company.
“But also, we need to make sure that we do not give up in our journey, in the long run, on decarbonizing the power system as a whole,” Zingoni said.
Reaching this goal will be “very complex” and “will take time,” said Olivier Le Peuch, CEO of SLB, the world’s largest offshore drilling company, emphasizing that companies will need to balance technology, energy sources and collaboration with other businesses to do so.
“Balance is the key word. We need to keep the balance in this, so that we can address the security, the affordability and sustainability at the same time,” Le Peuch said.
So, where are we in the energy transition? Watch the panel’s highlights, moderated by CNBC’s Dan Murphy, in the video above.