Not long ago, natural gas was the closest you could go in calling a fossil fuel renewable energy. This thought is currently slowly vaporizing out of the mind of energy experts and energy agencies, which are considering replacing it as soon as possible. The US’s latest move to suspend the mega Atlantic Coast pipeline and Ireland’s choice to stop the importation of the oil are the trends demonstrating the dethronement of gas from its comfortable position in the market.
With nations enforcing the Paris agreement’s climatic regulations, sources of energy for household electrical operations like cooking are slowly moving towards the renewables to minimize emissions and enhance efficiency. Nick Stansbury, the chief product researcher of Legal & General Investment Management Ltd. Although natural gas contributes to the lowest carbon emissions in London, its colleagues like coal and diesel have tainted its image.
Financiers and investors are avoiding natural gas projects and instead focusing all their support on programs that will help realize the Paris Agreement regulations’ achievement. Stansbury stated that gas companies are ignorant that the public is shifting its focus away from it. He added that the coronavirus measures had catalyzed people’s minds to realize the essence of going to renewables and dropping all fossil fuel products.
Fossil Free, a global environment association, reported that over 1000 institutions are cashing out of the fossil fuel projects and transferring this cash into renewables. The US alone has recorded a withdrawal of close to $10 billion gas pipeline projects even though the Donald Trump administration is backing up the gas companies.
One visible masquerade is the fact that coal and natural gas are running the economy of the US. Additionally, gas companies are investing in gas production and facilities with increasing demand. Shell’s CEO, Ben Van Beurden, explained that they are capitalizing on the market demand to enable them to invest in their upcoming renewable energy projects. He added that they would develop the liquefied gas technology until they feel its burden is too much to bear before, they can milk it if it doesn’t shine in the market.
In Europe, the governments are shifting their coronavirus pandemic recovery efforts to the renewable industry, which appears to be more promising since it will work directly with the electric vehicles industry. These governments visualize a system that creates employment for its citizens and ensures that the Paris Agreement regulations on pollution are under consideration.
Finally, although the LNG may show progressive steps in attracting the European, Asian, and African energy markets, it is just for a while before investors realize that they should invest in renewables. Additionally, natural gas will eventually come to its explosive end when countries ban fossil fuels and their operations since its generation is dependent on the excavation processes.