The energy transition is characterized as the change from fossil fuels to cleaner sources of energy, mostly renewables. But the transition involves more than just switching to solar and wind infrastructure.
Because the characteristics of renewable energy sources are so radically different, and because energy is so fundamental to every function in life, the transition will affect the functioning of all industries and other walks of life.
Maintaining a strong pace of emissions reductions post-2030 requires a relentless focus on energy and material efficiency, electrification, and a strong role for low-carbon liquids and gases.
There will be a surge in electrification. As more renewable power becomes available, whatever functions can be performed with electricity will be switched. Applications that require the transport of energy to the place of use will be converted to energy carriers, such as hydrogen or lithium-based batteries. The widespread use of lithium and hydrogen will be a key enabler for the change to more than 40% renewables. Low-carbon hydrogen and carbon capture and sequestration will scale up significantly, building on a decade of rapid innovation and deployment in the 2020s.
Most governments have or will soon establish net-zero targets around 2050–2060. These targets put an imperative on carbon capture and sequestration (CCS) without which the net-zero goals would be unachievable. Passing these targets into law and the planned incentives, stimulus, and funding underscores the investment going into new energy.
At the same time, the finance sector has shifted its focus on the environmental, social, and corporate governance (ESG) mandate, with economic recovery now tied to the acceleration of the energy transition.
Schlumberger continues to invest in new energy technology ventures and innovative partnerships in strategic sectors. We are diversifying our portfolio of projects in selected markets and geographies where existing policies and regulations can make projects attractive. Today, our Schlumberger New Energy ventures sectors include:
Remove CO2 and achieve negative emissions, even in hard-to-abate sectors.
Heat and cool buildings while reducing CO2 emissions by up to 90%.
Use the heat of the Earth to generate electricity by tapping into hot water and steam zones.
Unlock affordable hydrogen production, energy storage, and fuel applications at scale.
Explore new ways to produce and process high-purity lithium with the entire production ecosystem in mind.