Future outlook and way for oil & gas industry

Abstract

The E&P industry has contributed to people’s lives and the development of the global economy for more than a century. In recent years, the E&P industry’s business environment has changed significantly due to climate change issues. E&P companies are now expected to contribute to the realization of a net zero carbon society. The decarbonization movement is also affecting the supply and demand of crude oil and natural gas. The IEA’s sustainable development scenario implies there may soon be a crude oil supply glut. Oil companies are undoubtedly facing significant challenges. Many E&P companies have announced new strategies including investing in new businesses such as hydrogen and renewable energy. Some companies have even transformed their entire business models from fossil fuels to renewables. On the other hand, it is unlikely that decarbonization efforts will proceed smoothly in developing countries where demand for fossil fuels may increase to sustain economic development year by year. To address the conflict between decarbonization and supporting economic development especially in Asian developing countries, the E&P industry should work to fulfill its two social responsibilities of providing a stable supply of energy and responding to climate change by strengthening upstream business operations and making them cleaner. I believe that we must see the reality, understand the needs of society, and play a central role in realizing those needs. In particular, I believe that it is up to you engineers to lead the transition to a net zero carbon society and contribute to people’s lives for the next 100 years.