Building Strategies Enabling Oil and Gas Industry Clients to Manage Unprecedented Uncertainty and Change.
The global oil and gas industry faces unprecedented external pressures. Long term, oil and gas demand continues to rise, supported by a combination of low prices and growing global demand. However, low prices mean that investment in developing new supply sources is hesitant and that exploration funding is scarce – and exploration success even scarcer. In the shorter term, the COVID pandemic has reduced both demand and investment. Meanwhile, investor, employee, and popular sentiment increasingly favor Net-Zero Carbon outcomes, and governments are promising these outcomes without a well-developed understanding of the costs and risks which they involve. While the developed economies attempt to define and to navigate the Energy Transition, global oil and gas demand growth is increasingly driven by industrializing Asian nations, while other developing regions experience prolonged energy poverty, putting them under pressure to shift long-standing geopolitical alignments.
In the face of these uncertainties, energy industry participants need to devise and adopt long-term strategies adapted to their internal assets and capabilities, and these strategies must also succeed in the face of their competitors’ strengths and external stakeholders’ demands.
Business Decision Optimization
The Carnrite Group has been advising senior oil and gas industry executives and leadership teams on all aspects of strategy for over 25 years. We bring to our clients150+ years of advisory experience on all aspects of the Energy Transition worldwide. We help participants from all industries understand the Energy Transition and the threats and opportunities which it presents for them. In two-way dialogue with Carnrite, companies and organizations of all sizes face up to the uncertainties, risks and options presented by the Energy Transition with increased levels of confidence, which therefore leads them to devise winning strategies, to set clear targets and to adopt an action plan to deliver them competently.
A representative timeline for the Energy Transition in the UK predicted by Carnrite; the nature and sequence of events in other nations will be different depending on geography, geology, politics, and degree of development.
Carnrite’s Sustainability Service Offerings
Carnrite’s Energy Transition practice is focused on strategy selection, on the operating model required to put the selected strategy into action, and on the pursuit of post-tax value-accretive projects aligned with that model. This suite of service offerings leverages Carnrite’s in-depth strategy, transformation, and operational experience in the energy and industrials sectors.
In addition, Carnrite has accelerated its commitment to the Energy Transition by making a strategic investment in Persefoni, which provides businesses a revolutionary new way to efficiently and continuously measure, report and manage their carbon footprints. Carnrite and Persefoni work together to support clients in all sectors to manage their businesses in the context of the Energy Transition.
Blackrock Puts Sustainability at the Center of its Investment Strategy
Larry Fink, chief executive officer of BlackRock, the world’s largest investment firm with approximately $7 trillion in assets, said the firm will immediately stop investing in companies that present a high sustainability-related risk. According to a report from Morningstar, investors in the U.S. alone contributed a record $20.6 billion to sustainability funds in 2019, four times the amount contributed in 2018.
Carnrite’s CEO, Alan Carnrite, commented, “Companies with a clear Energy Transition strategy and action plan have the opportunity to create tremendous value, particularly in sectors such as energy and industrials. Investors and other stakeholders are increasingly demanding sustainable investment opportunities. Carnrite is ideally positioned to help companies in these sectors devise and implement these strategies.”