ENERGY TRANSIT AND FUTURE OF HYDROCARBON MARKET

The Paris Clime Treaty, which was signed in 2015, made prepositions to energy transition. The energy transition is a global transformation of energy systems, which includes four elements – energy efficiency, decarbonization, decentralization and digitization. Energy transition is aimed at solution of climate problem by gradual refuse of fossil fuel (coal, oil and natural gas) by expansion of use of ‘green’ renewable sources of energy.

The COVID-19 pandemics and rapid digitization of various spheres of the economy accelerate the transition form traditional sources of energy to alternative ones. Recognizing inevitability of oil replacement and changes in energy market, leading oil and gas powers try to develop renewable energy industry and hydrocarbon projects on one hand and use maximum capabilities for monetization of hydrocarbon resources in remaining time on another hand.

Competent experts think that global demand on oil will be on the top in the next 20 years, however, it does not mean the end of “oil epoch” in visual future. The demand on oil will not go away due to giant world fleet of vehicles working on traditional fuel and existing huge infrastructure of oil product consumption. Growing passenger turnover in aviation and big petrochemical facilities based on oil fuel will support this demand. Oil and gas will continue to be the foundation of the world energy sphere as this is what can provide energy to growing economy fast, guaranteed and at affordable cost. In the meantime, gas is a material for hydrogen fuel, which is thought to be perspective direction in the world energy industry.

Being on the fourth place in the world by hydrocarbon reserves, Turkmenistan takes into account new realities in its energy strategy. Together with the growth of production and export of hydrocarbon materials, the production of oil and gas commodities with high added value is increased. National strategy for development of renewable energy of Turkmenistan until 2030 has been approved in December last year. The project of construction of hybrid solar and wind power station with output capacity of 10 MW on the territory of Altyn Asyr Lake is one of practical measures for realization of this strategy.