Turuk Oil and Gas

The global energy landscape is going through major shifts

Long-term energy outlook at the start of 2021, following a year of unprecedented challenges The COVID-19 epidemic and accompanying economic crisis wreaked havoc on the energy environment, and the route to recovery remains uncertain.

The oil and gas sector is under growing pressure to explain the consequences of energy transitions for their operations and business models, as well as the contributions they can make to lowering greenhouse gas emissions and meeting the Paris Agreement's targets.

Societies are demanding for energy services as well as carbon reductions. Oil and gas companies have succeeded at providing the fuels that are the backbone of today's energy system; the question now is whether they can also help provide climate solutions.

Clean energy changes will touch every oil and gas firm, therefore everyone in the sector must decide how to adapt. The industrial landscape is diverse, and no single strategy solution will be suitable for all. The Majors, a group of seven large integrated oil and gas firms having a disproportionate influence on industry practises and direction, have received a lot of attention.

The increasing social and environmental pressures on many oil and gas companies raise complex questions about the role of these fuels in a changing energy economy, and the position of these companies in the societies in which they operate.

So far, investment by oil and gas companies outside of their primary business areas has accounted for less than 1% of total capital expenditure. Redeploying capital towards low-carbon companies necessitates both appealing investment opportunities in new energy markets and new capabilities inside corporations for those looking to diversify their energy operations.

There is a lot that the sector might do right now to decrease its own environmental footprint.
Uncertainty about the future is a major problem for the industry, but this is no justification for businesses to “wait and see” when making strategic decisions.

For several important capital-intensive renewable energy technologies to mature, the oil and gas sector will be crucial.
The industry's resources and expertise can play a critical role in addressing emissions from some of the most difficult-to-abate sectors. This involves the advancement of carbon capture, storage, and utilisation (CCUS), as well as low-carbon hydrogen, biofuels, and offshore wind.

A dynamic energy industry would alter the game for upstream investment.
Even with quick transitions, investment in upstream projects is still required, but the sort of resources created varies dramatically.
In the absence of any investment, production from current fields falls at a pace of about 8% per year, which is more than any reasonable reduction in world demand.

The move from “oil and gas” to “energy” forces firms out of their comfort zone, but it also provides a means of managing transition risks.
Some big oil and gas corporations are planning to transition to “energy” businesses, which will provide consumers with a broad variety of fuels, power, and other energy services.

It is possible to restructure the energy sector without the oil and gas industry, but it will be more difficult and costly.
Oil and gas companies must clarify the implications of energy transitions for their operations and business models, as well as explain how they can contribute to accelerate the pace of change