Opportunities & conclusion

There are a number of opportunities available to oil and gas companies as they address climate change. Reimagining ‘big oil’ through a managed transition to ‘big energy’ creates the possibility of selling new products and accessing new markets. Certain activities can also introduce operational cost savings and build in portfolio resilience, reducing the risk of stranded assets. Investors have become more sophisticated about engagement over recent years, whether working alone or collaboratively. Oil & gas companies will increasingly find that finance for climate-change adaptation or mitigation activities is much more readily available.

Selling to new markets

- Seize the new market opportunity presented by commercialization of advanced biofuel technology.
- Similarly, take advantage of an increase in demand for alternative fuels; and of new business options, such as fleet charging services and low-carbon petrochemicals.

Metric: Ethanol and biodiesel production

Access to new capital

- Tap into the sustainable debt available from financial institutions to climate transition initiatives. This follows a broader market trend.
- Oil and gas companies raised just under $13 billion in green bonds, sustainability-linked loans and green loans in 2019, up from $270 million in 2017.

Metric: Sustainable debt issuance

Operational cost savings

- Avoid the potentially extensive heat losses (and energy costs) from steam systems, fired-heaters (furnaces & other flue exhausts), flares, inadequate insulation, and poor heat recovery.
- Save operational costs from efficient facility design and ongoing monitoring through digitalization. Optimize processes and minimize equipment downtime.

Metric: Cost of production improvement

Portfolio resilience

- Join the global trend of investment in renewable power capacity, and sell the power to new and existing customers who are seeking low-carbon alternative energy sources.
- Enter a thriving market: since 2008, global investment in new renewable power capacity has exceeded that for fossil fuel power, year-in-year-out.

Metric: Clean energy spending targets

Risks avoided: Developing stranded assets, an uncompetitive operating model, and a lack of access to new capital.