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Net Zero Delayed: Oil Execs Shift Targets to 2070+
19 Mar
Summary
- Energy executives now expect net zero by 2070 or later.
- Fervo Energy secured $421 million for geothermal project.
- Middle East conflict escalates, impacting oil and gas prices.
Global energy executives have recalibrated their outlook on achieving net zero emissions, with a new report indicating that a majority now anticipate reaching this milestone by 2070 or later. This represents a notable shift from earlier projections made just three years ago.
The consultancy Bain surveyed over 800 executives, finding that policy support has lagged, hindering market incentives for clean technologies. Optimism has waned as the economic realities of the energy transition have become clearer.
Meanwhile, US-based Fervo Energy has successfully secured $421 million in debt financing for its Cape Station geothermal project in Utah. This funding will cover the remaining construction costs for the carbon-free power source, which is expected to begin delivering electricity this year.
The escalating conflict in the Middle East has led to increased targeting of oil and gas infrastructure, contributing to a surge in oil prices. Brent crude settled 3.8 percent higher on Wednesday at $107.38 per barrel amid these geopolitical developments.
