Oil & Gas at the Center of the Energy Transition

All participants in energy are participants in a changing system

𝗜 𝗸𝗲𝗲𝗽 𝗵𝗲𝗮𝗿𝗶𝗻𝗴 𝗳𝗼𝗹𝗸𝘀 𝗶𝗻 𝗼𝗶𝗹 𝗮𝗻𝗱 𝗴𝗮𝘀 𝘀𝗮𝘆 𝘁𝗵𝗲𝘆 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗽𝗮𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 “𝗘𝗻𝗲𝗿𝗴𝘆 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻”...

But they are…

It is 𝘁𝗵𝗶𝘀 𝗽𝗮𝗿𝗮𝗱𝗼𝘅 𝘁𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗴𝗲𝘁 𝗺𝗼𝘀𝘁 𝗼𝗳 𝗺𝘆 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸.

Regardless of business model, or strategic focus, every logo in the energy system is exposed to a moment is enormous change. And that 𝗰𝗵𝗮𝗻𝗴𝗲 𝗜𝗦 𝘁𝗵𝗲 “𝗘𝗻𝗲𝗿𝗴𝘆 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻”, even if where is the system is headed, and how will we get there, remains uncertain.

Consider this - those traditionally in the oil & gas sector, now find themselves grappling with three big shifts:

Growing 𝗶𝗻𝘁𝗲𝗿𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱𝗻𝗲𝘀𝘀 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 𝘀𝘆𝘀𝘁𝗲𝗺: traditionally separated, the worlds of molecules and electrons are colliding.

The rise of environmental attributes (think LCFS, RECs and IRA) means there is another vector of value to capture.

Add in a growing emphasis and realization (or rediscovery) of the importance and value of reliability, “energy” products are becoming a 𝗺𝗶𝘅 𝗼𝗳 𝗽𝘂𝗿𝗲 𝗲𝗻𝗲𝗿𝗴𝘆, 𝗿𝗲𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁𝗮𝗹 𝗮𝘁𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝘀 (𝘁𝗵𝗲 𝗰𝗵𝗮𝗿𝘁 𝗺𝗮𝗽𝘀 𝘄𝗵𝗲𝗿𝗲 𝘄𝗲 𝗮𝗿𝗲 𝘀𝗲𝗲𝗶𝗻𝗴 𝗱𝗲𝗮𝗹 𝗳𝗹𝗼𝘄 𝗯𝘆 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆).

For oil & gas businesses, that means an enormous amount of 𝘁𝗿𝗮𝗽𝗽𝗲𝗱 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗰𝗼𝘂𝗹𝗱 𝗯𝗲 𝗵𝗶𝗱𝗶𝗻𝗴 𝘄𝗶𝘁𝗵𝗶𝗻 𝗮𝗻 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻'𝘀 𝗮𝘀𝘀𝗲𝘁 𝗯𝗮𝘀𝗲. Access to land, water, pore space, emissions (yes emissions), gas, infrastructure, and so on all can be valuable components to new and emerging value chains.

And of course, 𝗴𝗮𝘀-𝘁𝗼-𝗽𝗼𝘄𝗲𝗿, one of the major themes of the year, is creating newfound intimacy between gas resources, gas generation, power markets broadly, and reinforcing the interconnectedness of the system.

𝗪𝗵𝗲𝗿𝗲 𝗱𝗼 𝘆𝗼𝘂 𝘀𝗲𝗲 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗼𝗶𝗹 𝗮𝗻𝗱 𝗴𝗮𝘀 𝗽𝗹𝗮𝘆𝗲𝗿𝘀 𝗺𝗼𝘀𝘁 𝗲𝘅𝗽𝗼𝘀𝗲𝗱 (𝘁𝗼 𝗿𝗶𝘀𝗸 𝗼𝗿 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆) 𝗶𝗻 𝘁𝗵𝗲 “𝗘𝗻𝗲𝗿𝗴𝘆 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻”?