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Media Release: Oil and gas companies will continue to fuel the future
in News
Amidst the growing pressure from investors, customers and the workforce, oil and gas operators will continue to play a pivotal role in powering the world for decades to come.
The latest State of Play report, Fuelling the Future: What’s next for Oil and Gas?, looks at four external scenarios and four business strategies based on oil and gas companies grappling with decarbonisation pressures and future energy demands. This includes a pivot to clean energy, as well as examining whether the best strategy for operators is to remain true to the core DNA of their business and the industry as oil and gas producers.
Regardless of the approach operators choose, the industry will continue to be impacted by several key trends, with renewable energy and electrification (74%), socially responsible investment (52%) and talent attraction and retention (33%) predicted to have some of the largest impacts on the industry over the next 15 years.
The report breaks down the core business model approach for the potential strategies. This includes addressing the role of carbon capture and storage, the viability of hydrogen at scale and the enablers required for a renewable, electrified future. Exclusive modelling undertaken by State of Play also unpacks three fuel alternatives at current prices to demonstrate the price differential between natural gas, blue hydrogen, and green hydrogen.
State of Play Chair Graeme Stanway says, “Decisions made today will impact the industry in decades to come. Oil and gas companies are faced with a slew of external forces and deciding on a strategy to address these will be critical to their survival.”
The success of these strategies will be determined factors including geopolitics and international capital flows. The data shows that majority of oil and gas executives feel policy and regulation (65%) is the best way government can intervene to support innovation in the industry. Community sentiment and sustainability requirements are also playing a role in the flow of funds.
“As investor pressure rises, the oil and gas industry will need to address the question of how to deal with public sentiment driving investment decisions, rather than solely profit. We are hearing from industry, however, that whilst some banks have a strong ESG focus, there are many out there still willing to fund oil and gas projects.”
Mr Stanway says
For more information, contact Lisa Harwood at lisa@stateofplay.org.
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