Oil majors are adopting various strategies for the energy transition
Outlook 2022: The future of oil majors in the energy transition
The big oil and gas companies are faced with the prospect of losing a large part of their market as the world transitions away from fossil fuels. Can they carve out a positive role for themselves?
Oil supply will increase by 6pc by 2030 under stated government policies, but decline by 27pc in a scenario leading to net zero by 2050, according to the IEA. For gas, the figures are plus 10pc and minus 9pc. That is a wide range of uncertainty. And stated government policies would require an investment of nearly $700bn/yr in upstream oil from 2030—well above current levels—whereas on the net-zero-by-2050 trajectory there will be no need for investment in new fields. With reasonable optimism about global progress in converting to clean energy, a tipping point will eventually occur when prices will decline closer to the production costs of the lowest-cost fields, mainly in Opec countries. Tha
Also in this section
24 April 2025
Liverpool Bay project on track for 2028 startup as Italian energy company reaches financial close with government for CO₂ transport and storage network
21 April 2025
Agreement on a two-tier emissions trading scheme does not go far enough to meet IMO GHG reduction targets, say observers
11 April 2025
As the global economy grows, demand for materials is expected to increase. The way materials are made could incorporate new technologies in the future to ensure economic growth is more sustainable
9 April 2025
AI is powering the Middle East & North Africa’s digital transformation, but can the region meet soaring energy demand sustainably? Small modular reactors may hold the key
