Marakon Commentary

The future of oil and gas: The writing is on the wall

March 25, 2021
Pipes Oil and Gas

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.

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