Last week, during an interview, I was asked if I prefer LNG or renewables as the best solution for the energy transition. The question was clearly designed to elicit a polarized response—something headline-worthy. But the answer is not as simple as choosing one or the other. Over the following days, the question kept swirling in my mind.
The energy landscape is undergoing a profound transformation, driven by the urgency of climate change, the need for energy security, and rapid technological advancements. While transitioning to a low-carbon future is essential, we must recognize that oil and gas are not fading components of the past; they play a critical role in this journey. In fact, they will help carry us forward together with renewables.
Global energy and electrification demands continue to rise, and the key to unlocking a sustainable energy future lies in creating synergies between traditional fossil fuels and emerging renewable technologies. It is not about either/or; it’s about both. By integrating these sectors, we can advance faster and farther toward our goals.
Having led both oil and gas operations and renewables companies, I want to share five areas that highlight the importance of this synergy. The following are some of the lessons learned, as well as how traditional energy sectors and new industries can collaborate to move forward:
- Inadequate Infrastructure Planning: Many countries have failed to upgrade or modernize their energy grids in time to handle the variability of renewable energy sources such as wind and solar. Traditional energy sectors can help stabilize grids and provide flexibility, offering the reliability needed as we transition. Scenario planning and alternative capital allocation will help resolve this challenge.
- Overreliance on One Source of Energy: Relying too heavily on a single energy source, whether it’s fossil fuels, wind, or solar, can lead to gaps in supply, especially in regions with seasonal fluctuations. A diverse portfolio of energy sources, including both oil and gas, can ensure consistent energy delivery while renewables scale up.
- Policy Instability: Shifts in political priorities often disrupt long-term renewable energy projects. However, traditional energy infrastructure can act as a bridge during periods of uncertainty, ensuring energy security and investor confidence while renewable projects gain momentum.
- Overlooking Energy Storage: The evolving energy grid—shifting from centralized fossil-fuel generators to small, distributed renewable energy producers—requires robust energy storage solutions. The oil and gas sector’s experience in managing complex demand and supply chains can expedite the development of energy storage technologies that are critical for maximizing renewable energy’s potential.
- Failure to Integrate with Other Sectors: Energy policies that ignore their impact on related sectors—such as transportation, agriculture, and industry—often face setbacks in implementation. Fossil fuels and renewables must be aligned within a holistic, cross-sector approach to create a more reliable and cost-effective energy system.
These non exhaustive list underscore the importance of a balanced, long-term strategy that leverages the strengths of both fossil fuels and renewables. The future of energy isn’t about choosing between the two—it’s about embracing both and strategically aligning them to drive faster, more reliable, and sustainable progress.
I am sharing one of multiple paths to a resilient energy system that meets today’s demands while building a greener future for tomorrow.