The energy transition represents $14 trillion worth of uncertainty for upstream oil and gas, according to a new report by Wood Mackenzie.<\/p>\n
Oil demand may continue to grow for another decade or more. On the other hand, if the world acts decisively to limit global warming to 2 Degree Celsius by 2050 oil demand and prices would fall rapidly later this decade.<\/p>\n
Wood Mackenzie estimates the range of pre-tax future valuations for upstream is a staggering $14 trillion \u2013 from $9 trillion to $23 trillion. On a post-tax basis, operators\u2019 share of this economic rent ranges from $3 trillion to $9 trillion.<\/p>\n
\u201cThe industry now finds itself having to supply oil and gas to a world in which future demand \u2013 and price \u2013 are highly uncertain. The range of possible outcomes is dizzying. But the world will still need oil and gas supply for decades to come, and the scale of the industry will remain enormous,\u201d WoodMac vice president Fraser McKay said.<\/p>\n
Delivery and discipline are paramount in all aspects of the upstream value chain as the macro environment for oil and gas gets tougher. Performance against budgets and timelines has improved dramatically since the last downturn, the report said.<\/p>\n
The industry needs to remain relentless in its push to improve efficiency, drive down costs and deliver projects flawlessly. Oil and gas companies need to send a strong signal to stakeholders that they can be reliable stewards of capital.<\/p>\n","protected":false},"excerpt":{"rendered":"
The energy transition represents $14 trillion worth of uncertainty for upstream oil and gas, according to a new report by Wood Mackenzie. Oil demand may continue to grow for another decade or more. On the other hand, if the world acts decisively to limit global warming to 2 Degree Celsius by 2050 oil demand and prices would fall rapidly later this decade. Wood Mackenzie estimates the range of pre-tax future valuations for upstream is a staggering $14 trillion \u2013 from $9 trillion to $23 trillion. On a post-tax basis, operators\u2019 share of this economic rent ranges from $3 trillion to […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-416120","post","type-post","status-publish","format-standard","hentry","category-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/416120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=416120"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/416120\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=416120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=416120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=416120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}