Outlook 2022: The future of oil majors in the energy transition
The big oil and gas companies are faced with the prospect of losing a large part of their market as the world transitions away from fossil fuels. Can they carve out a positive role for themselves?
Oil supply will increase by 6pc by 2030 under stated government policies, but decline by 27pc in a scenario leading to net zero by 2050, according to the IEA. For gas, the figures are plus 10pc and minus 9pc. That is a wide range of uncertainty. And stated government policies would require an investment of nearly $700bn/yr in upstream oil from 2030—well above current levels—whereas on the net-zero-by-2050 trajectory there will be no need for investment in new fields. With reasonable optimism about global progress in converting to clean energy, a tipping point will eventually occur when prices will decline closer to the production costs of the lowest-cost fields, mainly in Opec countries. Tha
Also in this section
17 October 2024
Experts debate carbon pricing and fossil fuel subsidies in the MENA region on second day of summit
17 October 2024
In our final look back into the Petroleum Economist archives, we turn the clock back to September 2016
17 October 2024
Keynotes on first day of Dii Desert Energy Leadership Summit celebrated 15 years of progress and outlined strategies for accelerating clean energy
16 October 2024
The impact from Libya’s lost barrels versus the threats to Iranian supply highlight the type of buffer in the oil market and the demand implications