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
8 May 2024
Despite Australia’s first import terminal nearing completion, the prospect of additional regasification projects is far from certain
7 May 2024
Ample stocks and a soft demand outlook will limit how much LNG Europe can import this year
3 May 2024
Upcoming elections are likely to deliver a win for the party of president Andres Lopez Obrador, but analysts differ over to what degree his successor will stick to his energy policies