Even though oil and gas companies are increasingly focusing on reducing the environmental impact of their operations with aggressive efforts centered on the narrative of energy transition, they aren’t going to move away from fossil fuels, at least over the next few decades, according to Dr. Jerry Bailey, director of Petroteq Energy and former president of Exxon Arabian Gulf.
“Oil companies are not going to move from oil, that’s what got them where they are,” Bailey said in a recent interview with Hart Energy’s Faiza Rizvi.
“Oil companies have an important and lucrative niche in this regard. There is no reason to transition away from that. There are enough companies working in the other arenas that can cover those types of things,” he said, referring to renewable energy.
Although a few oil and gas companies could partially venture in alternative energy sources like wind, solar and geothermal, but Bailey said they represent “a small niche” and only 12% to 15% energy could be generated from these sources over the next 25 years.
Commenting on investment in oil and gas, Bailey said there will always be demand for petroleum-based products. “Investors will always have some secured interest in fossil fuels and in oil because the returns have always been good and they continue to be good.”
Bailey also talked about the new environmentally friendly oil extraction technology developed by his company Petroteq Energy, which is producing oil out of Vernal, Utah using this new solution. Petroteq’s clean oil recovery technology (CORT) greatly reduces harmful greenhouse gases that are emitted as a byproduct of oil sands extraction. Using CORT, Petroteq can also extract up to 99% of hydrocarbons, allowing maximum bitumen extraction while leaving zero waste.
“You could call it a ‘Green Oil’ operation,” he said. “It’s really a remediation process, which not only extracts the oil in an environmentally friendly way, but cleans up the sand and makes it agriculturally available again.”
Jump to a topic:
- $100 oil? (0:25)
- Are oil companies moving away from fossil fuels? (2:29)
- Investment in oil and gas (4:38)
- New oil extraction technology (7:34)
Recommended Reading
Bechtel Awarded $4.3B Contract for NextDecade’s Rio Grande Train 4
2024-08-06 - NextDecade’s Rio Grande LNG Train 4 agreed to pay Bechtel approximately $4.3 billion for the work under an engineering, procurement and construction contract.
SPATCO Energy Exits RF Investment Fund
2024-08-15 - RF investment Partners said it invested in SPATCO Energy Solution’s $230 million continuation fund, which was led by Kian Capital Partners and Apogem Capital.
CrownRock Offloads Oxy Shares Two Weeks After Closing $12B Deal
2024-08-15 - Underwriters of the offering agreed to purchase CrownRock’s Occidental stock at $58.15 per share, which will result in approximately $1.719 billion in proceeds before expenses.
Delek Logistics Offering Senior Notes to Pay Off Debt
2024-08-15 - Delek Logistics Partners and its subsidiary plan to use the net proceeds from the senior notes offering to pay off a portion of the outstanding borrowings from its credit facility.
Dividends Declared in the Week of Aug. 12
2024-08-16 - As second-quarter earnings season wraps up, here is a roundup of select upstream, midstream and service and supply companies’ dividends declared in the week of Aug. 12.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.