Full Title: Positioning For Green: Oil and Gas Business in a Low-Carbon World: A Spectrum of Opportunities for Oil and Gas Companies
Author(s): Amy Chronis, Kate Hardin, Anshu Mittal, Kathryn Pavlovsky
Publication Date: October 12, 2021
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A growing number of oil and gas (O&G) companies are pledging net-zero goals, but not all are clear about how to get there. In a recent Deloitte survey, 56% of respondents view the energy transition as a mixed bag of opportunities, risks, or a complex phenomenon. Successful transition will take a long time, and some prominent energy transition scenarios project oil demand in 2030 to remain around 90 MMbbl/d. This implies there’s likely to be sustained value in oil and gas—indeed, an overwhelming 77% of surveyed executives plan to maintain hydrocarbons as their long-term business.
By associating themselves with an archetype that closely matches their strategy, O&G companies can identify ways to drive value from the transition—and there’s indeed value near US$1.3 trillion to be unlocked.1 However, companies must address their internal transformation using operations design, supply chain ecosystem, a digital mindset, and organizational setup. Fundamentally, meeting high stakeholder expectations can require each archetype to attain a balance not just between economics and environment, but also between growing the overall market and growing their market share.