Oil and Renewables: The Need to Evolve Together, Not Apart
- Jorge Miroslav Jara Salas
- Jan 6
- 3 min read
Recently, I had the opportunity to share my perspective on the energy industry in an article for El Nacional (link below), where we discussed a paradox that defines our time: the urgent need to supply energy to a constantly growing world while drastically reducing our environmental impact.
As someone who has dedicated more than 30 years to the global oil and gas industry—managing projects from the Caspian Sea to Latin America—I have witnessed multiple cycles of transformation. Yet today’s challenge is truly unique. Too often, public discourse frames this moment as a zero-sum battle between hydrocarbons and renewables. The reality, from both a technical and investment standpoint, is far more complex and nuanced.
The myth of immediate substitution
We must be realistic about timeframes. As I mentioned in the interview, the timeline for replacing fossil fuels was widely miscalculated. The technical reality suggests that coal may take 20 to 50 years to disappear, and oil between 50 and 100 years.
This is not an excuse for inaction—it’s a call for strategy. Natural gas, for instance, emits half the carbon dioxide of coal and stands out as the key transitional fuel, projected to represent around 20% of the future energy supply, complementing 70% from renewable sources.
Innovation: Evolving together
The key point I wish to highlight—and one that is central to Magnaccord Group SL’s investment strategy—is that oil and renewables are evolving together. They are not adversaries; they are necessary allies.
Today, we’re witnessing the rapid adoption of crucial decarbonization technologies across the industry:
Carbon Capture and Storage (CCS): Companies in Brazil and Peru (such as Petrobras and Pluspetrol) are investing heavily in energy efficiency and the use of artificial intelligence to enhance processes.
Asset Hybridization: The integration of renewable sources with natural gas facilities, as PetroPerú has done, is critical to overcoming the intermittency of renewables and ensuring a stable energy supply.
Industrial Self-Consumption: Major players like Repsol are using solar energy to power their own extraction operations, thereby reducing the carbon footprint of each barrel produced.
The challenge of capital and consensus
Technology alone will not save us. As Goldman Sachs rightly points out, great ideas are essential—but capital is what turns those ideas into reality.
I am increasingly concerned by how promising projects are being delayed, not only due to limited budgets but also because of a lack of consensus between government entities and operating companies. The cost of these advanced technologies—vital to prevent climate change from costing 138% more in mitigation—cannot and should not be borne by the private sector alone.
Looking ahead
My concern is both personal and professional: “Our grandchildren will face serious challenges” if we fail to act with balance. The effects of climate change are already visible—in the form of droughts and the growing turbulence experienced in flight paths.
The energy transition is not about flipping one switch off and another on. It is about intelligent integration—where technological innovation and strategic investment allow fossil fuels to finance and facilitate their own gradual and orderly replacement.
As leaders in this sector, our responsibility is to look ahead, promoting a sustainable balance where operational excellence and environmental integrity move forward together.
What do you think about natural gas as a bridge to renewables?
I invite you to share your thoughts and read the full article in El Nacional:
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