• Martin Findlay, Partner |

Do we have the resolve to maintain focus on the energy transition amidst significant global challenges and a rising demand for fossil fuels?

That is certainly a challenge that the Oil and Gas industry continues to face and one of the several questions that many will be left wondering after reading the latest Energy Transition Survey.

This renewed interest in, and reliance on, the sector can be put down to two major changes:

  1. The rebound of energy demand as global economies re-opened
  2. The war in Ukraine and sanctions on Russia’s energy exports

We’ve seen gas prices driven to record highs and a re-examination of the supply issue given Europe’s reliance on Russian energy exports for years. 

Rapidly changing industry

It’s a very different industry compared to the one that was energised following COP26 in late 2021. As global leaders descended upon Scotland, it was seen as a major symbolic shift; the reliance on Oil & Gas needed to end and it needed greater global collaboration to get there.

Since then, the rhetoric around this transition has, at times, risked being trumped by the need to deal with rising energy prices, the cost-of-living crisis, supply chain issues and, of course, maintaining energy security.

The survey may speak to a post-COP26 period, but the perennial issue of climate change isn’t going away. Change must continue to happen. The Oil & Gas industry is leading this change and understands that it has the potential to grow the UK economy and be a true driving force in to the drive towards a lower-carbon economy and a net zero future.

The direction of travel is clear. Oil & Gas businesses are expected to substantially transform their operations and do so at significant pace over the next decade. 

Preparing for the future

Careful planning and investment, at both a corporate and government level, will be needed to make sure that decades worth of experience, current skill sets, and existing infrastructure are used to their full potential as we move towards a greener future.

The industry remains committed to the cause but individually, businesses must ensure they remain focused on the long-term objective. That’s the only way they’ll succeed.

Doing so will see workforces grow, provide significant boosts to the economy, and above all else, the planet will prosper.

Climate change, and the transition to low-carbon economies and net-zero, is no longer a conversation for the future. Progress is being made on the road to a more sustainable future, the challenge facing the industry is understanding how firmly they need to keep the pedal pressed to the floor against the backdrop of soaring costs..

You can read further insights from the latest Energy Transition Survey here