Schlumberger New Energy Executive Vice President Ashok Belani discusses what makes the energy transition a pivotal moment for our future.
The energy transition is a large phenomenon. We're talking about a change of the portfolio of energies to go to 50% renewables or more for the carbon footprint to change in the right manner.
This is a large transformation because energy is so fundamental to life. It controls almost every walk of life and many industries in the world. So, all of those would have to transform to be able to take a new mix of energies in the future.
That is the opportunity set we're talking about. There will be a lot of technical and business innovation where Schlumberger New Energy will grow. Learn about the role of Schlumberger in the emerging new energy markets.
There are many changes that will occur during the energy transition. That's why it's called the transition. Let's take four main segments in which large changes will happen: electrification, energy carriers (hydrogen and lithium), and carbon capture and sequestration.
Since solar and wind both give us electrons or electricity, a large number of applications in the world today which are done by other means or forms of energy will have to switch to be performed with electricity. In addition, from the point of generation, if we want to use the energy in a different point, then we have to be able to carry energy, and so we need these two very important energy carriers: hydrogen and lithium. Each one of these is going to have an economy of its own, or an industry ecosystem on its own, and a lot of business innovation happened for both.
In addition, even if we were to electrify many things, and we would have the carriers of hydrogen and lithium, if we are still going to get net zero by 2050 or 2060 in all the countries that have announced those intentions to get there, then we still need carbon capture and sequestration, and hence, that provides yet another business opportunity.
These are all changes that will happen and are, at the same time, business opportunities for Schlumberger New Energy.
Two very important factors in the world of new energy in the energy transition: One is that many new regulations will steer business toward low carbon footprints. In addition, there will be incentives. They may be through market mechanisms or through regulatory mechanisms, which will allow people to monetize their lower-carbon footprints in the future. Finance will promote businesses in the direction of understanding these regulations and benefiting from the incentives for low carbon. So, any business operating in the world of new energy must have a good understanding of all the regulations and the incentives which are in the markets that are associated with that business.
In addition to that, new partnerships will be very important—new partnerships between actors coming from different industries who are stakeholders in a certain carbon management process and can both benefit if they align their interests and work together in growing this market in the future.
It's a very innovative world from the point of view of moving toward low carbon and benefiting from it and establishing these new partnerships and new business models to grow these markets in the future.