Energy Transition and COVID-19 Pandemic: Insights from Duane Dickson, Deloitte
SHALE Magazine · Episode 262: Duane Dickson, Deloitte
The COVID-19 pandemic has brought about a lot of changes in various sectors, and the energy industry is no exception. There has been a growing consensus about the energy transition and how the pandemic could accelerate the conversion from oil and gas to renewable-based energy. In this article, we will explore the insights of Duane Dickson, a special guest from Deloitte, regarding this topic.
Impact of Lower Oil and Gas Prices on Energy Transition
David Blackmon, the host of the show, asked Duane about the impact of lower oil and gas prices on the energy transition. Duane stated that the lower demand for fuel and lower fuel dependency would have two reactions. Firstly, prices would be attractive, which could stimulate more fuel demand. Secondly, those who are concerned about getting in an Uber or public transportation might decide to buy a car with an internal combustion engine. However, he believes that the industry is really focused on efficiency, and the transition to renewable-based energy is a good business case for those investing in them.
Systemic Efficiency and Renewable-Based Energy
Duane believes that the biggest change in the energy transition will be greater systemic efficiency. The pandemic has taught us that we need transparency about what resources we can harness and use. The fuel industry, renewables, and every individual will have a role to play in achieving greater systemic efficiency. The renewables industry would have to get down their own cost curve, and the technologies would have to do better. Duane also highlighted that longer-term, electricity has a lot more to do with the energy transition than fuels. The conversion to natural gas or renewable sources for electricity could make it essentially free.
Sustainability and Carbon Footprint
Duane emphasized that everybody cares just as much as they did about sustainability and carbon footprint, but it’s not the number one priority right now. People are trying to survive and get through this. However, the focus on sustainability and reducing the carbon footprint would continue to be critical in the energy transition.
Conclusion:
Duane Dickson’s insights provide us with a comprehensive understanding of the energy transition and how the COVID-19 pandemic could impact it. The industry’s focus on efficiency and the renewables industry’s cost curve reduction and technology improvement would play a significant role in the transition. Moreover, greater systemic efficiency and the conversion to renewable sources for electricity would make the transition sustainable and reduce the carbon footprint.
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