Fossil fuels: the current global situation

Fossil fuels have been humanity’s most popular source of energy since the industrial revolution.  These natural resources were formed over the course of millions of years by the decomposition of organic material combined with the gradual effects of pressure and heat.  The main fuels in this category are coal, oil and natural gas.

Although their extraction and use have led to the widespread modernisation of socio-economic conditions around the world, the pollution associated with their use has come to be viewed as unsustainable.  As a result, the search is now on to find alternative solutions.

What are fossil fuels?

A brief outline of fossil fuels and their various origins is important to have a clear and accurate picture of these resources and their use, which despite the controversy surrounding them, are still very economical in terms of cost.

Coal was of course the first of these resources to be used on a large scale, above all to power steam engines and in manufacturing industries.  It is a solid, carbon rich material, which is extracted from both underground and surface mines.

Oil on the other hand, is a viscous liquid, containing a mix of hydrocarbons.  It is refined to obtain a range of products, including petrol, diesel, kerosene and other derivatives used in the chemical industry.

Finally, natural gas consists mainly of methane and is considered less polluting than the other fuels mentioned above.  It is often used for domestic heating, in electricity production and as vehicle fuel.

Why are fossil fuels dangerous?

The intensive use of fossil fuels has been responsible for many environmental and health problems.  One of the most concerning is greenhouse gas emissions, especially carbon dioxide (CO₂), a major contributor to climate change.

One of the worst consequences of the indiscriminate use of coal, oil and natural gas is global warming, a phenomenon responsible for extreme weather events, rising sea levels and the loss of biodiversity.

In addition, the burning of fossil fuels generates atmospheric pollutants which are harmful to human health, such as nitrogen dioxide (NOx), sulphur dioxide (SOx) and fine particulate matter.  These pollutants cause cardiovascular and respiratory disease as well as other chronic health conditions.

The extraction and transport of fossil fuels also bring significant environmental risks, such as oil spillages, contamination associated with the extraction of gas via fracking and deforestation linked to coal mining.

The current global situation

At present, the fossil fuel market is characterised by a delicate balance between supply and demand.  Following the peak in oil prices of early 2022, the price per barrel stabilised at around 80 dollars.  This price level is considered sustainable by both consumers and suppliers, but OPEC is hoping for a future rise in demand.

Even though petrol and gas companies continue to register record profits, they still face a complex dilemma.  On one hand, investors require high profit levels, while on the other, pressure is growing to continue the green energy transition towards more sustainable energy sources.

Although the International Energy Agency (IEA) has stated that it would be preferable not to exploit any new fossil fuel reserves if the target of zero emissions is to be reached by 2050, numerous exploration and extraction projects were registered all over the world in 2024.

The regions of the world which are most active in oil and gas extraction include:

• Central and South America, where Brasil, Guiana, Mexico and Argentina are leading extractors;
• North America, where Shell has invested in developing the Sparta gas reserve;
• Africa, where rapid expansion is underway in Nigeria, Angola, Senegal and Namibia;
• Europe, where Norway has approved 19 new projects, for a total value of 18.5 billion dollars;
• Asia, where Malaysia and New Zealand continue to increase their exploratory activities.

The green energy transition and global initiatives

Although apparent resistance seems to persist in the fossil fuel sector, many companies and governments are working to accelerate the energy transition.  Their main strategies include:

• carbon capture and storage (CCS): technologies which enable the capture of CO₂ emitted during the combustion of natural resources and its underground storage. The high cost and energy consumption required mean that take-up of this solution remains limited;
• investment in renewable energy sources: oil companies are increasingly investing in wind and solar energy, as well as in bio-energy and hydrogen. Nevertheless, Greenpeace has criticised the fact that such investment remains marginal compared to levels of investment in fossil fuels;
• the elimination of fossil fuel subsidies: many economists and environmentalists maintain that eliminating government subsidies for coal, oil and gas would help make renewable energy sources more competitive on the market;
• technological innovation: 3D printing for example, is starting to be used in the energy sector, in oil plant production and waste reduction.

In Europe, countries like Denmark and Norway have begun experimenting with advanced carbon storage technologies, while in North America new direct air capture plants (DACs) have been set up.  In Asia and the Middle East new intitiatives for more sustainable energy production are also emerging.

In conclusion, fossil fuels still form an essential component of the global energy system, but reliance on them is gradually being reduced.  The urgent need to cut greenhouse emissions and limit the effects of climate change is leading governments and businesses to invest in more sustainable technologies.  However, the pace of the energy transition is still not sufficient to meet international climate targets.

The adoption of more ambitious energy policies, the improvement of clean energy technologies and the reduction of financial support for fossil fuels are all essential measures to ensure sustainable energy for the future.

While some nations are accelerating their switch to renewable energy sources, others continue to expand their oil and gas production, counteracting those efforts.  The future energy scenario will therefore depend on the world’s ability to find a balance between economic development and environmental protection.

Translated by Joanne Beckwith