Photo by: SergeyVButorin / iStock
If Russia is not going to leave the world markets in the near term (and it certainly does not intend to), it will have to sell low-carbon products. Because no one will simply buy any other.
At the moment, coal miners are happy about high demand for their product; however, in 5–10 years time the situation can change. Moreover, the strained relations between Russia and the European Union have stimulated the low-carbon agenda there. With high energy prices, investment in hydrogen, green energy and energy efficiency will increase. As a result demand for Russia’s traditional exports, such as oil and gas, will soon fall markedly. The question is on what scale.
By 2035, many countries want to ban the sale of petrol and diesel cars, and their number will increase. As a result, in some time there will be hardly any internal combustion engine cars left. In the meantime, transport currently accounts for about 60% of all liquid fuels consumed.
It is necessary to understand, that oil and gas can be used not only as fuel, but as raw material. As Mendeleev noted: "Burning oil is the same as heating an oven with money. As a raw material, oil and gas can be used to produce a wide range of products, from plastics to fertilisers.
Cover photo: Stefan Dinse / iStock
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