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To fund sector-specific net zero transition pathways, financial institutions need to deepen their knowledge of the businesses they finance. Read more here.
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We believe there are five ways oil and gas companies are primed to accelerate the development and commercialization of the renewable technologies that will drive the energy transition:
1. Capital strength
Enabling the energy transition will require up to US$5.8 trillion each year to 2050, according to some estimates. The oil and gas sector’s deep experience of raising capital, even in the most competitive of markets, as well as its ability to maintain robust balance sheets and consistent returns, means it is well equipped to fund innovative new energy businesses.
2. Market intelligence
Renewable energy markets continue to develop at pace. As technology advances and clean energy options grow, making choices about the best fuel source for each initiative will become more complex. The oil and gas sector has long harnessed market intelligence to direct the right energy to the right place at the right time at the right price.
3. Supply chain excellence
The oil and gas sector moves US$4 trillion in value through its supply chains annually. That's about 4% of the global GDP. Around the world, renewable energy projects are growing in size and scale. Bringing these projects to fruition will require orchestrating complex ecosystems of suppliers, partners and assets. Oil and gas companies’ deep experience of managing complicated global supply chains, optimizing assets and mastering the logistics of deliveries will be especially valuable in a more complex, connected renewable energy market.