Next oil and gas windfall will come from transition
Ability to attract ESG capital will become key differentiator for energy companies as the transition advances
The recent UN climate panel report’s message was clear: act now or it will be too late. Fossil fuel usage accounted for 91pc of global emissions in 2022, and energy once again took centre stage. Regulators are finally getting into gear, adopting policies that will force companies to stop kicking the can. The UK government, for example, just announced plans to require major companies to disclose net-zero transition plans. But energy companies should not just act for reasons of science or regulatory pressure, they should transition for profitability. The competitive differentiator for oil and gas will be a company’s attractiveness to ESG capital, and this will be won by those who can demonstra
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