Outlook 2022: Fossil fuels still have generation role to play
Extreme price volatility as electricity systems adapt to greater intermittent renewable penetration serves as a reminder of the role legacy assets still have to play
We have experienced a year of great change and volatility in global energy markets, as the world has gradually recovered from the Covid-19 pandemic. Power generation from renewable sources took on greater importance as countries looked to meet their net zero requirements, coal plants were phased out and many countries relied on gas-fired generation as a transitional resource when the wind did not blow or the sun did not shine. Soaring gas prices—due mainly to reduced supplies and higher demand as the world came out of the pandemic—regularly put electricity systems under pressure. The wholesale price of gas in December 2021 was approximately five times that of December 2020. Are these trends
Also in this section
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them