BP Predicts Energy Production Through Renewable Sources Will Decline In The Future

BP Plc. said at a press release on Monday that the costs of energy production through wind and solar means will decline in the next 35 years.

BP Plc. says that the expenses of producing energy through renewable means, such as wind farm and solar farms, will reduce excessively in the next 35 years or so, it said on Monday at a press release.

The oil and gas company published an outlook of 80 pages, enlightening the public about the trending usage of technology since the past years will raise the demand in energy that can be looked after through renewable sources of producing electricity contributing to lessening gas emissions.

The company believes that without availing the technology to help the environment, non-renewable sources of energy, such as coal, oil, and gas, will continue to be the cheapest and easiest supply of energy till 2050. A report was made that had an analysis of the effect of technology on energy production and consumption in the coming years, which stated that gas would turn into a more economical source of energy in comparison to coal because carbon will be priced $40 a ton.

Prices of carbon will need to rise in order to make solar and wind more competitive. According to the 80-page outlook, the company has expectations reserves to rise 40.8 trillion barrels of oil, which previously was 2.9 trillion barrels. It shows an increase of 2.5 trillion barrels which will be needed to fulfill the high demand of energy around the world till 2020.

The oil and gas manufacturer and refinery’s technology chief, David Eyton, said, “Without a price on carbon, fossil fuels are fiercely competitive.” According to the forecast of the company in the end, coal is to remain the major source of power and fuel till 2035. However, it will be losing its market price to natural gas and other renewable sources of energy, for transportation expectations of liquid fuels such and petrol and diesel are going to remain the main source of energy for a very long time.

The CEO of the oil giant, Bob Dudley, said, ‘Technology opens up a whole range of possibilities across the energy sector, it can bring great value to consumers and businesses, and it can also disrupt and challenge existing models.”

He is optimistic about what will happen due to the advanced technology in the future. The company mentioned the benefits of digital tech effect on the energy production market. David Eyton said, “Digital technologies - such as advanced sensors, data analytics, robotics and automation, enabled by supercomputing - have the most widespread potential to drive change and make energy supply and consumption safer, more reliable, more efficient and more cost-effective.”

BP Plc stock is running at $36.68 currently on November 3.