Renewables will take an increasing share of global energy supply over the next decades. And as they become more economical, they will displace carbon-based energy sources over time. While carbon-based energy and chemical production will still increase to support global growth, demand volume is set to decline within long-term oil and gas (O&G) planning horizons. It is no longer a question of whether renewables will begin to replace traditional sources of power and chemicals but when.
The O&G industry is in transition and O&G players need to decide what markets to focus on and how to win in the future by leveraging current assets and capabilities. Success will depend on: (1) choosing the path forward that best fits with the company’s starting position, and aligning organisation and resource allocation, (2) building a stakeholder coalition to execute without painting the company into a corner, and (3) monitoring trigger points for strategic shifts to adjust investment focus and sequencing along the way.
