A Successful Energy Transition Will Need Oil Demand Destruction
There’s a dark secret about the energy transition that politicians and energy regulators all too frequently shy away from. Unfortunately, unless this issue is dealt with the energy transition may never take place. The world consumes ever-growing amounts of energy as its total population increases, led by emerging markets that, in addition to strong population growth, are seeing an increase in the average wealth of their citizens. Any increase in wealth leads to more consumption of everything, energy included. And if countries are distracted by climate change discussions and rush into emission targets and renewable capacity, a shortage of energy supply follows.