How majors can thrive in the age of transition – part two

Oil and gas majors need to comprehensively reimagine their future, ending the central role played by fossil fuels and plastics in the economy globally. This instalment examines short-term strategies, including the preserving the social licence to operate

This series of articles explains how the majors with an interest in longevity should respond if they want to meet the various, often conflicting, demands from their stakeholders. A comprehensive energy transition strategy would enable the majors to manage these financial and non-financial demands, and thereby ensure their continued success during the age of the third energy transition. At present, the most critical risk facing the oil and gas industry is losing its social licence to operate. The immediate strategic priority of the majors should therefore be decarbonising oil and gas operations. This requires, firstly, a change in the way portfolio investment and divestment decisions are made