Energy Companies Need To Switch To Renewable Or Go Out Of Business, Study Says

While the fossil fuel industry still has a sizeable chunk of the market in terms of energy generation and a staunch ally in President Donald Trump, experts generally agree that renewable energy is where the future is at. Now, a new study is warning energy companies to start adopting green sources if they want to stay in business. The time limit is until 2035.

The study in question was conducted by the Wood Mackenzie research group, which looked into the current trend in terms of demand within the energy industry. According to the findings, energy companies that are still getting the majority of their power production via fossil fuel should at least invest one-fifth of their resources on renewables.

Much of this stems from the clear decline in demand for oil all over the world as the majority of countries are now shifting to clean energy, even the nations that produce fossil fuels. Thanks to this shift in priorities, any company that continues to rely on oil, coal, or natural gas will find that they will be operating at a loss in a matter of years.

“Although it won't change the Majors' portfolios materially for decades, investment in renewables presents a substantial opportunity,” the study reads. “At current costs, achieving the same market share the Majors have in upstream oil and gas would require US$350 billion in wind and solar investment out to 2035. While this seems an unlikely scenario, renewables could account for over one-fifth of total capital allocation for the most active players post-2030.”

According to the researchers behind the study, it’s inevitable that renewable will take over the market in the coming years, Futurism reports. These shifts in demand and trend in the energy industry have become permanent, and the only question with regards to clean energy overtaking fossil fuel is when.