New DNV survey highlights oil and gas industry paradox as majority remains optimistic regarding growth

June 25, 2024

(WO) – A recent survey by independent assurance and risk management provider DNV showed that 64% of oil and gas industry leaders see the energy transition accelerating, with 68% optimistic about sector growth despite 2020’s downturn.

Source: DNV

Digital technologies and low-carbon innovations are pivotal in transforming the sector, making it more efficient and sustainable. However, there's a significant concern about insufficient investment in new oil and gas capacity, creating a paradox between meeting demand and decarbonization goals.

The survey, "The paradox of petroleum - How the oil and gas sector is transforming through uncertainty," gathered insights from nearly 450 senior professionals. It revealed a strong investment focus on alternative energy sources like wind, solar, hydrogen, and biofuels, driven by recovery and energy security concerns, including geopolitical events like the Ukraine conflict.

Challenges persist, with 51% of executives worried about global investment levels in new oil and gas capacity, particularly in North America. Operational performance and profitability remain critical, with plans to increase energy efficiency investments and standardize processes. Barriers to renewable energy investment include low financial returns, existing business model constraints, and unclear policies.

Addressing the skills shortage is crucial, with 66% of executives prioritizing the attraction of young, skilled workers through innovative strategies. The sector is also committed to environmental impact reduction, with 61% planning increased decarbonization investments.

The industry faces a paradox of balancing high oil and gas consumption with advancing decarbonization efforts. Companies like CPC Corporation Taiwan and TotalEnergies are strategically navigating this balance to ensure stability and reduce greenhouse gas emissions. The future of the oil and gas sector depends on meeting both demand and decarbonization targets, leveraging digital tools, new workforce strategies, and increased decarbonization efforts.

DNV's CEO, Ditlev Engel, emphasized the oil and gas sector's critical juncture, highlighting the need for more profitable business models and clear policies to accelerate the transition while maintaining operational efficiency and profitability.  


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