I cover the oil & gas industry (global upstream) for an industry newsletter and I get no sense that O&G companies at all understand what is coming down the pike. Immense amounts have been invested into shale gas, especially, but all that will be wasted if more and more electricity production goes to renewables. Importantly, all the above is happening when gas/LNG prices are at record lows due to massive oversupply at the moment. Just imagine what will happen when prices go up!
The point here is that every renewable installed liberates demand from fossil fuels. The initial cost may be high, but since fuel is free the long-term savings are huge. This is coal being phased out, but the same logic applies to natural gas, too. Fossils have a lower initial cost only because of the existing infrastructure. Take away that advantage by eliminating the need for a centralized grid, and they become far less price competitive. Wind and sun, after all, are free.
I cover the oil & gas industry (global upstream) for an industry newsletter and I get no sense that O&G companies at all understand what is coming down the pike. Immense amounts have been invested into shale gas, especially, but all that will be wasted if more and more electricity production goes to renewables. Importantly, all the above is happening when gas/LNG prices are at record lows due to massive oversupply at the moment. Just imagine what will happen when prices go up!
The point here is that every renewable installed liberates demand from fossil fuels. The initial cost may be high, but since fuel is free the long-term savings are huge. This is coal being phased out, but the same logic applies to natural gas, too. Fossils have a lower initial cost only because of the existing infrastructure. Take away that advantage by eliminating the need for a centralized grid, and they become far less price competitive. Wind and sun, after all, are free.