Outlook 2022: Profiting from the transition
The shift to lower-carbon energy may disrupt legacy business models but will also present major opportunities for many oil and gas companies
The energy world is in transition. Following the Cop26 climate conference, it seems the industry is bending the emissions curve, with an average global warming of less than 2°C by 2100 in sight. There are, however, two particular aspects emerging from the debate that seem contradictory at first sight: the impossibility of full electrification of our economy; and the imperative to decarbonise our energy system. The first point means oil and gas is not going away anytime soon. The coronavirus-induced demand collapse is almost over, with global oil demand surpassing 100mn bl/d. Note that this is a full recovery, even without jet fuel demand returning to 2019 levels. The IEA provides a range of
Also in this section
8 May 2024
Allowance prices rise 34% since start of year as regulator imposes tighter limits and considers reduction of free allocations
7 May 2024
Policymakers should consider backing enhanced weathering as a CDR technique with benefits to the agricultural sector
3 May 2024
Developers look to government’s forthcoming budget to restore support as industry suffers loss of momentum
1 May 2024
Abundant storage and low cost of capturing CO₂ from sharply rising gas production mean NOC’s ambitious CCUS targets look well within reach