Oil and gas firms need scale to win over transition doubters

Lower rates of return and competition for assets pose challenges as producers and traders seek to scale up in renewables

Investors will not reward integrated oil and gas companies for their energy transition strategies until they start to deliver projects at the scale and pace required to achieve net zero, and with the right with rates of return, according to speakers at the FT Global Commodities Summit. Europe’s oil and gas majors have all in the last 12 months set out ambitious strategies to pivot their businesses to meet net-zero emissions targets. Share prices have shown little response— although the impact of the Covid-19 pandemic on oil demand and prices has also weighed on valuations during the last year. “You will start to see the share prices respond over time” Knipe, Oliver Wyman “At the mome