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FIGURE 2 TOP DRIVERS FOR INVESTMENT IN NATURAL GAS AND/OR LNG

this year. This comes amid uncertainty cent, versus 34 per cent globally). This
around the oil price and a volatile is because many companies in the
economic climate – the top barriers to industry have now built financial
growth reported by more than 1,000 reserves that allow them to manoeuvre
survey respondents. and invest in forging a long-term
Now in its tenth year, New Directions, position, compared with the cash-
Complex Choices: The outlook for the oil strapped days of the downturn.
and gas industry in 2020 assesses Significantly, they are pursuing
industry sentiment, confidence, and multiple routes including diversifying
priorities, and provides expert analysis into renewable energy, decarbonising oil
of the key challenges and opportunities and gas production, and loosening the
for the year ahead. purse strings for low and zero carbon gas
Two thirds (66 per cent) of senior oil projects such as hydrogen produced
and gas professionals globally are from electrolysis and renewables, or
confident for industry growth in 2020, from natural gas combined with carbon
down 10 percentage points from 2019. capture and storage (CCS). For example,
Sentiment in the UK is the lowest, with in the UK, a far greater proportion of
only 59 per cent expressing positivity. respondents (29 per cent) view hydrogen
The most upbeat country is Brazil as a priority for R&D and technology
where more than eight out of ten are investment compared to globally (17 per
feeling buoyant about their growth cent). This viewpoint has trebled since
prospects (84 per cent). last year, up from just nine per cent.
Despite this weaker optimism,
industry leaders are making bold What is clear from the forecasts
t’s a very interesting time to be in decisions, building greater efficiencies
the oil and gas industry. Not only is and rising to long-term challenges as is that in order to resolve the
it demanding intellectually because the world pivots toward a lower carbon energy conundrum of how to
everybody is considering new energy future. This confirms a new- ensure a secure, affordable
I directions and needs to make found resilience to weathering an supply of decarbonised energy,
complex choices that will have powerful unpredictable and unprecedented
impacts for the longer term, but also outlook. The lean profile which some the industry will need to exploit
because we all must deliver annual organisations have developed since the the synergies between gas and
results, achieve our short-term business downturn has allowed leaders to forge a renewables, not choose one or
priorities, and keep the workforce stronger and more sustainable position
focused and motivated. as the energy transition progresses. the other
New research published by DNV GL
reveals that optimism for growth in the The decarb decade Intriguingly, the study reveals that
oil and gas industry has weakened for Our research shows that the sector has nearly half (48 per cent) of total
placed incentives and initiatives to participants believe gas and renewables
decarbonise at the centre of its agenda. are competing against each other
FIGURE 1 EXTENT TO WHICH RESPONDENTS AGREE THAT GAS AND This will undoubtedly remain a priority (Figure 1).
RENEWABLES ARE COMPETING AGAINST EACH OTHER in 2020 and beyond. What is clear from the forecasts is that
Nearly three-quarters of those in order to resolve the energy
questioned globally (71 per cent) expect conundrum of how to ensure a secure,
to increase or maintain investment in affordable supply of decarbonised
decarbonisation, rising sharply from 54 energy, the industry will need to exploit
per cent in 2019. While such spending the synergies between gas and
intentions are slightly less pronounced renewables, not choose one or the other.
in the UK (68 per cent), more As part of the report, several industry
respondents see the energy transition executives were interviewed. Sebastian
as a major driver of investment in Koks Andreassen, CEO of INEOS Oil &
renewable and clean energy (44 per Gas Scandinavia, said: “Simplistically,

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