Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Francois Austin leads the Global Energy Practice at Oliver Wyman and is an expert on the Mobility and Climate & Sustainability Platforms with the Oliver Wyman Forum.
No, not at all. Even if the industry wished to turn back the hands of time, it can no longer afford to. The starting gun has been fired. Reducing greenhouse-gas emissions is no longer an issue for academics, governments, and activists. Oil companies' customers, bankers, and investors are increasingly committed to a lower carbon world.
In response to this sea change, Europe's major oil companies have already cut the oil price assumptions used to plan long-term investments so their expected returns on capital from oil and renewable gas projects will be comparable. On top of that, they are rebalancing their portfolios and redirecting capital from oil production to electron production from solar panels, wind turbines, and have plans to provide turnkey clean energy solutions to cities and regions.
Integrated oil companies will not be organized as they have been in the past. They will accelerate the pace that they spin off marginal oil fields that no longer fit in a clean energy agenda for financial, strategic and brand related reasons. These will likely end up with private equity players since they will be inconsistent with the investment goals of public funds.
ING_news this is terrible news