The Oil & Gas industry worldwide is facing a widespread increase in demand to clarify the effects of energy transitions for operational business models around the globe. This is also because companies like Stanford Oil Company want to explain the contributions they can make to make the world greenhouse gas-free and achieve the individual and collective goals of the famous Paris Agreement.
There is no denying the fact that the world’s oil and natural gas companies play extremely vital and critical roles in the energy sector of today’s world. Also, these companies are definitive contributors to world economies as well. Affordable and reliable oil and gas supply have also become extremely important to maintain the demand and supply balance in today’s world. These companies are an integral part of the economy, especially that of developing countries.
However, now the world has started to see a drastic change in policies of these companies from those that supported oil and gas production to those policies that are beginning to disincentivize fossil fuels because of the negative implications they might have on the external environment. Many governments worldwide are also supporting and encouraging the use of sustainable technologies to move towards renewable energy sources since they are proven to be more beneficial to the environment.
The world has also realized the cons of increased usage of Carbon, and therefore many of these companies are also trying their best to decrease carbon usage and emissions. This is also being done by the organization of circular economies by the world’s governments. By doing this, companies are moving towards using materials that are reused and recycled instead of being wasted at the end of their service. Investors of these companies are becoming the center of attention since they also play an active part in all this.
The challenge for Oil & Gas companies
Now, the Oil & Gas companies face a challenge with respect to altering their business models to adjust to the new decarbonizing world. These companies now have to make use of a large variety of tools to engage with these decarbonizing efforts.
For these companies to thrive in these new conditions and become more successful in their efforts, they not only have to survive this energy transition but also have to support it.
Surviving in new conditions
The following steps can be taken by the oil and gas companies to survive the energy transition periods.
Firms should focus on making new strategies for low carbon business models. These strategies should ensure minimum usage of Carbon while maintaining profits as well as satisfying their stakeholders.
The Oil & Gas companies should look to increase investments in the new concept of net-zero emissions as well as the circular economy while staying in limits according to the Paris Agreement.
Develop Workforce Strategy
The development of an effective workforce strategy is also essential. This strategy should leverage into restoring the Oil & Gas sector as an attractive sector for bright young talent.