The global oil and gas industry is facing a dilemma as reliance on hydrocarbons grows, according to a new report by Deloitte, titled Portfolio Transformation in Oil and Gas.
Although some energy transition scenarios still project oil demand of at least 87 MMbbl/d by 2030, Deloitte says the global oil and gas industry has the opportunity to redeploy as much as $838 billion — or about 20 percent of cumulative capital expenditures — over the next 10 years, to optimize their hydrocarbon projects and pursue green energy ventures.
The report notes that this amount is sizable enough to further optimize the hydrocarbon business and open new avenues of growth. For comparison, the industry’s hydrocarbon investments were close to $285 billion in 2020, whereas its clean energy investments were only $60 billion during 2015–2020. The findings also suggest the opportunity to redeploy will not decrease, but rather increase if oil prices stay above pre-pandemic levels.
