Investing in oil and gas in a low-carbon world
We know balancing investments in oil and gas with the push for low-carbon solutions is no easy feat. In this rapidly evolving energy landscape, there is no clear blueprint or roadmap to follow.
The supermajors are focusing on increasing short-term production while remaining flexible in their spending on low-carbon initiatives, as witnessed in the latest round of earnings reports.
All six companies plan to grow upstream by at least 2% per year until 2025 and speak openly about strategies based on high fossil fuel demand. At the same time, they all have targets to reach net-zero for Scope 1 and Scope 2 emissions by 2050.
How will they get there? Read the full story to learn about their growth and investment plans.
? Fuelling for the future
Integrated E&Ps are pursuing renewable fuel projects to diversify their portfolios through equity stakes or outright purchases. Many of the deals involve fuels including biomethane, biodiesel, sustainable aviation, and e-methanol.
The breakdown:
Read more here.
?? Europe dominates E&P investments in low-carbon power deals
Europe remains the focal point for E&Ps investing in M&A power deals that utilize low-carbon solutions such as solar and offshore wind.
E&P companies engaged in 231 power deals between 2021 and 2023, about 10% of all power deals worldwide, according to Evaluate Energy data.
Read the full story here.
?? Next month: Senior Evaluate Energy analyst Mark Young examines the latest round of E&P financial results. He recently gave context to the Diamondback Energy-Endeavor Energy deal. Read his insight here.
Evaluate Energy Insights is a must-read for anyone looking to stay on top of the latest data-based trends and developments.
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