Energy Transition: The evolving role of oil and gas companies in a net-zero future


We are pleased to announce publication of the 2nd edition of CMS thought leadership report titled “Energy Transition: The evolving role of oil and gas companies in a net-zero future”.

We had yet again commissioned Capital Economics to assess the significance of the major O&G companies persifying into renewables, and to provide economic analysis to assess the outlook for investment by these companies in the energy transition globally. We looked at the last 18 months since we have published our 1st edition of Energy Transition report. Therefore, this year’s edition is a record of a step on a journey.

This time we also present the regional perspective form CEE, Middle East, Asia-Pacific, and Africa and the view from the inside in a form of interviews with several O&G majors.

Some of the key findings:

  • 10 out of the 15 O&G majors analysed had announced net-zero emissions pledges by end of 2020.
  • The jump in the annual investment in the energy transition by O&G majors is also striking - 4.2% of capex in 2020 vs 2.9% in 2018, a solid 23% increase across the sample as a whole in absolute terms, based on assumption using available data.
  • Capex investment in O&G has been hit hard during the pandemic; renewable power has been the segment least affected.
  • But while five of the 15 O&G majors are on track with their emissions pledges made as part of the Paris Agreement, all fall short in limiting the adverse impact of climate change to 2 degrees Celsius. This shows the urgent need for change and a strong call to action.
  • In one scenario, investment could rise more than threefold over the next decade – reaching $28bn a year by 2030. But on a less bullish scenario, investment could reach just $10.4bn by 2030, so there is a lot at stake.

Access and download the report here: The evolving role of oil & gas companies in an energy transition | CMS

If you have any questions in relation to our Energy Transition report or our energy transition expertise, please get in touch.