Good morning, here's what the Oilman has for you today:

• Forget about Net Zero, Says Exxon

• Electrification Will Boost U.S. Energy Security: Energy Sec

• Upcoming Oil and Gas Events

• Tweet of the Day

Forget about Net Zero, Says Exxon

We won’t manage to keep the rise in global temperatures to 2C above pre-industrial times by 2050.

The bad news comes from Exxon, which said that year, oil and gas will continue to provide over half of the energy the world consumes.

It’s not really news

CO2 emissions have been on an almost uninterrupted rise for decades.

Despite massive wind and solar deployment.

Despite trillions invested in low-carbon energy.

The only time emissions dropped was when the world was on lockdown.

Also, despite that wind and solar deployment, oil and gas have remained our main sources of energy.

They account for over 80% of the energy supply.

There was no way this was going to change drastically in less than 30 years.

I’m not even sure Exxon is right; the share of oil and gas will fall to 54% by 2050.

By 2100, maybe, but by 2050, the way things are going now? Hardly.

Transition not happening fast enough

"An energy transition is underway, but it is not yet happening at the scale or on the timetable required to achieve society’s net-zero ambitions," Exxon said.

Yeah, and you know why? Because Exxon sure does.

It’s not happening fast enough because it is turning out to be a lot more expensive than expected.

The price tag keeps getting revised higher and higher.

But what’s a few more trillion dollars when you’re trying to save the planet?

It’s because a few more trillion dollars is a lot that the transition is not happening, and oil and gas will remain the dominant sources of energy.

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Electrification Will Boost U.S. Energy Security: Energy Sec

Electrification will reduce U.S. oil imports, boosting energy security, Energy Secretary Jennifer Granholm has said.

According to her, imports can be cut by as much as 60% thanks to electrification efforts.

Is electrification really a solution to energy security concerns?

“With all this electrification, we could slash our net crude oil imports by almost 60%, and that strengthens energy security,” Granholm said.

But why are the grid operators sounding the alarm for blackout risks?

Why did the NERC say earlier this year that 66% of the U.S. risks power outages?

Well, it’s because wind and solar are being added more slowly than coal and gas power plants are being shut down, that’s why.

So, the electrification Granholm talks about hinges on an increasingly unreliable grid.

Sure, bring all those millions of EVs in and see those oil imports take a dive.

Only they wouldn’t

Americans are not buying EVs at the rate Granholm and the company would have wanted.

That’s because Americans like their cars to be reliable.

They don’t like them dying in the middle of the road because they’re out of range and there’s no charger on site.

And they definitely don’t like them catching fire for no apparent reason.

Those oil imports are not going down anytime soon.

Because, like local production, which is at a record high right now, they provide energy security.

Right now, it is on-demand, not in some distant hypothetical future.

Around the Global Patch

🇳🇴 High demand for new oil and gas blocks in Norway.
🌍 Oslo-Listed drilling firm strikes payday in West Africa.
🇷🇺 Russian crude oil shipments reach 8-week peak.

Upcoming Oil & Gas Events

• August 28-September 1: International Meeting for Applied Geoscience and Energy Houston, TX

• August 31: ND Oil PAC Golf Tournament Bully Pulpit Golf Course, Medora, ND

• September 7: Petroleum Alliance of Oklahoma Dove Hunt, Devol, OK

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