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Oil and Gas are Booming, Making the Net Zero Energy Transition Impossible

Oil and Gas are Booming, Making the Net Zero Energy Transition Impossible

In an era where global leaders and environmental advocates push aggressively for Net Zero emissions by 2050, the reality on the ground tells a starkly different story. Oil and gas production are not just holding steady—they’re booming. Major producers like the UAE, Iraq, Saudi Arabia, Brazil, Guyana, and even Norway are ramping up output, with ambitious plans to add millions of barrels per day (bpd) in capacity over the coming years. Three years ago, Michael Tanner and Stu Turley discussed on the podcast the possibility of Norway even shutting down its natural gas fields, and now it has become one of the largest natural gas suppliers to Europe. 

For instance, the UAE aims to hit 5 million bpd by 2027, while Guyana’s production has already surged to over 660,000 bpd and could reach 1.3 million bpd by 2030.

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This expansion contradicts Net Zero goals, as highlighted by Saudi Aramco’s CEO, who described the energy transition as “oversold and under-delivered,” particularly in regions like Asia, where fossil fuel reliance remains entrenched.

OPEC’s call for $18.2 trillion in oil and gas investments by 2050 underscores the long-term bet on hydrocarbons, even as renewable projects—like Saudi Arabia’s 44 GW of tenders—make headlines but fail to displace fossil fuels at scale.

Meanwhile, oil demand continues to climb, driven by economic growth in emerging markets and persistent needs in transportation and petrochemicals. This article examines the surge in oil, natural gas, and liquefied natural gas (LNG) demand over the past decade, contrasts it with the trillions poured into wind, solar, and energy storage, and evaluates whether the Net Zero push has been worth the marginal energy additions to global grids. The data paints a picture of a transition that’s not just stalled—it’s being outpaced by fossil fuel resilience.

The Unstoppable Rise of Oil Demand

Global oil demand has shown remarkable growth over the last 10 years, defying predictions of peak demand and underscoring the world’s enduring dependence on crude. In 2014, demand stood at approximately 92.5 million bpd.

By 2024, it had shattered records, exceeding 103 million bpd for the first time—a roughly 11% increase despite the COVID-19 dip in 2020, when demand plummeted to around 91 million bpd.

This equates to an additional 3,650 million barrels consumed annually in 2024 compared to 2014, representing vast energy volumes primarily fueling transport, industry, and chemicals.

Global oil demand – Source Sandstone Asset Management, Statista, IEA

This growth is fueled by emerging economies, with China’s refinery runs hitting two-year highs and naphtha imports poised for records in 2025. Forecasts suggest demand will continue rising to 108 million bpd or more by the early 2030s, challenging the notion of an imminent peak. Production has kept pace, reaching 82.8 million bpd in 2024, led by the U.S. at 13.2 million bpd.

Natural Gas and LNG: A Parallel Surge

Natural gas demand has paralleled oil’s trajectory, expanding from about 3,500 billion cubic meters (bcm) in 2014 to over 4,200 bcm in 2024—a 20% rise.
Demand grew by 2.7% (115 bcm) in 2024 alone, equivalent to 4 exajoules of energy, driven by power generation, heating, and industrial use.

Production rebounded by 2% in 2024, with key increases in major exporters.
LNG trade, a key enabler of global gas distribution, has boomed even faster. In 2014, trade volumes were around 241 million tonnes (MT). By 2024, they reached 411.24 MT, a 70% increase, connecting 22 exporters to 48 importers.

This growth averaged 5-11% annually, with 2024 seeing a 2.4% uptick despite high prices.

Projections from the Gas Exporting Countries Forum indicate natural gas demand could rise by another 34% by 2050.

Natural Gas and LNG Trading Volumes – Source Sandstone Asset Management, IEA, Statista

The Renewables Investment: Trillions Spent, Incremental Gains

In stark contrast, investments in wind, solar, and energy storage have skyrocketed, with clean energy funding exceeding $2 trillion annually by 2024 for the first time.

Focusing on renewables, annual spending on solar PV and wind reached $735 billion in 2023, with cumulative investments from 2014-2024 likely surpassing $4 trillion for these sectors alone.

Battery storage investments have also surged, part of broader clean tech funding, with global spending on energy storage reaching tens of billions annually—e.g., residential storage alone grew at a 51% CAGR to 33.4 GWh installed by 2023.

Yet, the electricity added to global grids from wind and solar tells a tale of inefficiency. In 2014, wind generated about 700 TWh and solar around 200 TWh, totaling ~900 TWh (3% of global electricity).

By 2024, wind hit 2,494 TWh and solar 2,131 TWh, a combined 4,625 TWh (about 15% of ~30,000 TWh total global generation).

That’s a net addition of ~3,725 TWh over the decade.

For storage, capacity grew from negligible levels in 2014 to 375 GWh by 2024, with a record 200 GWh added that year.

However, storage doesn’t generate energy—it enables intermittent renewables, with cumulative additions around 350 GWh over the period.Was the Net Zero Cost Worth It?To assess value, consider the cost per unit of added electricity. With ~$4 trillion invested in wind and solar from 2014-2024, the 3,725 TWh addition implies a rough cost of over $1 billion per TWh.

This doesn’t account for grid upgrades, subsidies, or intermittency issues requiring backup (often gas). Storage adds another $500-700 billion in costs for minimal direct energy addition.

Comparatively, oil’s 10 million bpd increase provides energy equivalent to ~6,200 TWh annually (assuming 1 barrel yields ~1.7 MWh thermal energy), far outstripping renewables’ grid additions, and at lower marginal costs for established infrastructure. Natural gas and LNG growth add even more, with gas often serving as a backup for renewables.

The verdict?

The Net Zero push has delivered incremental grid decarbonization but at exorbitant costs, while failing to curb fossil fuel booms. Renewables have grown rapidly—wind and solar generation up eightfold and threefold since 2015—but they’ve barely dented overall energy demand, which remains 80% fossil-fueled.

With oil producers expanding unchecked and demand forecasts rising, the transition appears not just challenging, but impossible under current trajectories.

Policymakers must confront this reality: without breakthroughs in technology or policy, Net Zero remains a distant dream amid fossil fuel dominance. This story will change soon, as the Trump adminstration may even have a ruling on the Obama-era definition of CO2 as a pollutant. Once the EPA releases the final changes, there will be limited financial support for Carbon Taxes or Carbon footprint fines. Scope 1, 2, and even Scope 3 emission tracking schemes will have to be shut down. I have a prediction that the EU, Canada, and the UK will continue to follow their current path of Net Zero and fiscal collapse through deindustrialization forced by regulations. 
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