LAV Magazin 2021

MINDS OF ENGINEERS. PIONEERS AT HEART. Wintershall Dea is Europe’s leading independent gas and oil company. We search for and produce natural gas and crude oil – worldwide. Responsibly and efficiently. With the know-how of our engineers and as pioneers at heart, we are making our contribution to the energy transition. Now and in the future. wintershalldea.com for electricity in Germany in 2030 – same goes for Europe. In addition, power production in Germany only accounts for roughly twenty per cent of the energy demand. Where are we going to get the needed energy from? In Germany, natural gas has already proven the major contribution it can make to climate protection. The switch from coal-fired to gas-fired power generation saved around 6 million tonnes of CO2 emissions T he debate on energy transition as part of the global climate goals and decarbonised energy supply model is gaining momentum in Latin America and the Caribbean. Re- newables are taking up a growing part of the region’s energy mix, although most countries continue to rely on fossil energy sources for some time to come. Nevertheless, there is no ob- stacle for the decarbonisation of their economies, considering what natural gas can do. Looking into recent studies, the whole region is only responsible for less than ten per cent of the global greenhouse gas emissions. At the same time, total energy supply in the region depends heavily on oil and gas with numbers for the different countries oscillating between 45 and more than 80 per- cent. The energy transition in Latin America is currently progressing only slowly. Expected population growth in the Americas is likely to further com- plicate the challenge: energy demand is projected to grow steadily from now until 2040. This is especially the case as the share of renewables in Latin America is largely comprised of hydropower and biofuels. With the increase of extreme weather, such as droughts and floods in recent years, some countries experi- enced serious problems to respond to local energy demand. The task is clear: we need more energy with lower emis- sions at affordable prices. Here is how and why. The future will be decarbonized While energy demand is rising – not only in Latin America – Europe has decided to transform its economy to become the first climate neutral con- tinent. Of course, this means the oil and gas industry (and thus Wintershall Dea as well) needs to change, too. And we will: the future of energy is decar- bonised. I am fully convinced that gas will soon be an important pillar of Eu- rope’s future energy system. The same will probably happen in Latin America on the long-run or even by mid-term. Renewable sources alone will not meet the growing energy demand in the foreseeable future. They need a strong and reliable partner that is flexible and steps up when needed – without placing an undue burden on consum- ers and the industry. The whole world, and especially Latin America, is facing immense challenges: we need to tackle climate change, address the growing energy demand, and get our pandem- ic-shaken economies back on track. Since Wintershall Dea is a German company, let’s have a look to Germany and analyse the situation there. Politi- cians have admittedly agreed on a coal phase-out to be completed by 2038, since they have realized the country’s lignite usage as a problem, noting that it is even more emission-intensive than hard coal or other materials. In fact, its use, even went up significantly in the first half of 2021. What’s more, due to the surcharge mandated by Germany’s Renewable Energy Sources Act (EEG), the country has some of the highest electricity prices in the world. Short- ly after a direction-setting election in Germany, it is therefore worthwhile to reflect on what the economy, politics and society must do to complete the energy transition. I am convinced, that renewables alone cannot cover the electricity demand in Germany and Europe in the short and medium term. Once nuclear power and coal have been phased out and in accordance with the currently planned expansion of capacity, renewable sources alone will only be able to cover around 55% of the forecasted demand About Wintershall Dea Wintershall Dea is Europe’s leading independent gas and oil company, complemented by a stable midstream business. The company was formed in May 2019 through the merger of Wintershall Holding GmbH with DEA Deutsche Erdoel AG. This merger brought together two German companies, each with a history spanning more than 120 years. Both organisations have executed projects around the world, where they have devel- oped extensive expertise and advanced capabilities, making Wintershall Dea a leading op- erator and partner of choice for stakeholders worldwide. The company explores for and produces natural gas and crude oil in 13 countries. Latin Amer- ica is one of Wintershall Dea’s core regions, with activities in Argentina, Brazil and Mexico. All operations are managed by strong environmental standards, aiming to achieve net zero oper- ations by 2030 by increasingly focusing on reservoirs with a rel- atively low carbon footprint and strict emissions management. How we can secure an affordable supply of clean energy 38 Wintershall Dea