As winter sets in across the Northern Hemisphere and the calendar year comes to a close, companies naturally begin to review and record the latest industry developments. Nowhere is this sense of reflection felt more sharply than within the energy landscape, which is under increasing amounts of scrutiny from environmental, social, and governance frameworks.
McKinsey & Co. have concluded that oil and gas is here to stay for the foreseeable in its ‘Global Energy Perspective 2025’ report. Its projections estimate that fossil fuels will comprise potentially 55% of global energy consumption by 2050, alongside forecasting the slow growth of crucial alternative fuels that are unlikely to see wide adoption before 2040. Analysts believe there will be no “silver bullet for decarbonisation.”1
Questions of sustainability have long dominated industry discourse. As operators seek to navigate these currents, various solutions have been proposed: green hydrogen shows promise but costs prevent wide scale deployment; SAF partnerships frequent headlines almost daily but blending percentages remain low; and whilst carbon capture and storage (CCS) technology advances, investment in carbon capture and utilisation (CCU) methods lag behind.2
The limits of such stories may be seen as failures for the industry in its mission to decarbonise, but the combination of these various solutions show promise. It is likely that the diversity of these technologies, integrated across operations, will be the key to decarbonisation; there will be no ‘quick fix’ solution or a ‘one-size fits all’ approach that will solve the energy transition. Operators will have to consider what combination of technologies will best serve their refinery, petrochemical plant, or other facilities.
Our own attention here at Hydrocarbon Engineering reflects this ongoing debate. EPC (p. 10) covers the journey ahead for the downstream sector, asserting that innovation and flexibility are to be paramount for success. Other articles consider the growing adaptions needed by operators to ensure operations remain viable and sustainable throughout such turbulent times, such as Ketjen’s (p. 19) analysis of alternative catalysts to process lower-quality crudes, alongside PS Filter’s (p. 49) consideration of water management solutions to enhance efficiency in refineries and petrochemical plants.
Further discussion of such technologies is directly covered in the next edition of our EnvrioTech supplement, published alongside this issue of Hydrocarbon Engineering, following the success of the inaugural issue last year. This supplement is dedicated specifically to decarbonisation technology, solutions, and services transforming the downstream sector. If you haven’t already subscribed to Hydrocarbon Engineering, click here to ensure you receive your free copy of this supplement.
Many questions remain to be answered for the industry and the issue of sustainability will continue to be at the forefront of these discussions. What 2026 will bring for the sector is still largely up in the air but it is certain that the industry will continue this balancing act, as operators strive for environmental gains alongside maintaining cost-competitiveness.
