Fossil Fuels

Raw material markets in transition

While fossil fuels remain our main energy source, the global markets for these commodities are undergoing reconstruction. From exploration, production and refining to the end customer - the rules of the global commodity markets for fossil fuels such as oil, natural gas and coal are currently changing dramatically. Among other factors, this is due to technological developments in production techniques (e.g. fracking) and the corresponding new suppliers of petroleum products and natural gas. They come from countries that were almost completely dependent on fossil energy imports just a few years ago.

Production of crude oil

Fossil fuels in the tense context of international climate protection

Economically exploitable resources of natural gas, oil and coal are at our disposal, even in the long run. This is helpful from a consumer perspective, since fossil fuels are characterized by their simple and comparatively inexpensive production technology. They therefore represent to the consumer a convenient source of energy for heat, transportation and other purposes. On the other hand, the large amounts of CO2 and other environmentally harmful pollutants released during the combustion of oil, natural gas and coal are partially responsible for climate change. Policymakers in industrialized countries have made it very clear: in the long term – by 2050 – we need to completely abandon the use of fossil fuels.

Your resource company in times of energy change

European power supply companies, whose business models are based on the use of fossil fuels, must learn to adapt to the new global framework, tackle new competitors and meet the political desire to abandon the use of fossil resources.

  • Pricing mechanisms practiced for decades no longer fully apply, and are being reestablished
  • Discussions of the 'Carbon Bubble' – that is doubts about whether business models based on the use of fossil fuels are actually viable in the long-term – currently unsettle financial investors and thus impede access to new capital for investment in necessary infrastructure.
  • The development of unconventional fossil deposits is difficult to implement in a densely populated region like Europe. The development of new deposits in Europe comes at high cost and carries substantial risks for the success of individual businesses.
  • Economical available and exploitable coal reserves are under political pressure due to their unfavorable climate balance.

r2b energy consulting at your side

We support you efficiently and sustainably: we can help you to identify future trends in the field of the extraction and use of fossil fuels, thanks to our proven economic resource analyzes. We provide the basis for making sound decision on the development of your company, with forecasts and scenarios of the global consumption development of fossil fuels, including assessments of individual cost and technology developments.

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Surface mining

Selected References

Fossil fuel projects

Fundamental analysis of the gas market in the context of the energy transition in Germany

Client: Gas supply company

In this project, in cooperation with scientific institutions, we calculated medium-term forecasts for the future development of European demand for natural gas by industrial customers. Furthermore, we analyzed the future role of natural gas infrastructure, based on modeling (in particular of pipelines and natural gas storage facilities) and their best possible operation in an increasingly competitive market environment.

Contact head of project

Energy economic importance of lignite usage in Germany

Client: Industrial company

For this project, we focused on investigating German lignite mining and its role as a fuel in the future energy mix - especially in the context of electricity generation. We take account of European long-term climate protection targets, as well as the long-term proportion objectives for European renewables. Of course, in this project, we considered the security of supply aspect in terms of dependence on energy imports at the primary energy level.

Contact head of project

Diversification strategies in the global gas market

Client: Energy supply company

This project saw us develop possible medium and long-term strategies for the diversification of a procurement portfolio. To this end, we evaluated different supplier countries and transport routes in terms of their costs and their procurement risks. As a result, we developed a long-term strategy to diversify a procurement portfolio under uncertainty.

Contact head of project