A report by Norway’s DNV GL showed that 66% of senior oil and gas professionals said their employers were planning to increase investments in low-carbon energy in 2021, increasing from 44% in 2018. According to the survey, about 57% of the respondents revealed plans to increase investment in renewables, rising from 44% in 2020. Some 48% expect to raise investment in green or decarbonized gas. Only 21% expect to increase investment in oil projects this year.
Of the 1,000 surveyed professionals, 78% expect the oil and gas industry to consolidate this year and beyond, with 63% of them expecting more divestments, spin-offs, and demergers. Only 39% were optimistic that the industry would grow in 2021, compared to 66% in 2020 and 76% in 2019.
DNV GL’s report highlights investors’ reassessments and priority shifts as governments and industry incorporate multi-billions green investments in their post-pandemic recovery strategy. Europe to China proliferated net-zero climate policies in 2020, with the US expected to follow suit soon. These policies are expected to boost global efforts to decarbonize the energy industry in the long term.
