The Role of the Oil and Gas Industry in the Energy Transition

The oil and gas industry (OGI) is among the world’s largest, most complex, and most crucial sectors. However, the utilization of fossil fuels has come with attendant issues that affect both the natural and human environments. Initial reluctance to accept the industry’s contribution to the climate crisis has slowed efforts in decarbonization. Moreover, as political and economic pressures intensify and as environmental, social, and governance (ESG) investing becomes a global investment standard, industry players are now exploring ways to decarbonize existing operations and expand their energy portfolio to renewable and low-carbon sources. As a result, the spotlight is now on the industry and its response to the climate challenge. The future of fossil fuels lies in the ability of the sector to adapt to the market, environment, and social trends within the energy transition framework. Failure to do so could sidetrack net-zero carbon targets and sustainable development goals and render the industry obsolete. In this chapter, we explore the key role that the OGI could play in leading the energy transition and mitigating climate change. More specifically, we focus on three pillars: (1) low-carbon fuels, (2) modernization and digitization, and (3) harnessing subsurface and offshore expertise.