Write-downs of around US$145 billion in asset values globally over the first three quarters in 2020 have added to that perspective.Singapore, while not a domestic oil producer, has high stakes in this sector. The country is a global oil trading hub and a major global refining and petrochemicals center, accounting for 1.5 million barrels a day or 1.5 per cent of the global refining volume, and 25 million tonnes per annum or 1.2 per cent of the global petrochemicals capacity.
Institutional investors are scrutinising companies’ actions and resilience towards climate change. Public policies will increasingly be oriented toward reducing greenhouse gas emissions and fossil fuels’ share in the energy mix. The energy transition is well underway as oil and gas companies decarbonise and invest in new technologies.
While the energy mix is shifting towards more renewables, given the lack of stable renewable energy and accelerated energy demand in the region, the use of gas will likely remain important in providing energy to Asia as the region works toward reducing carbon emissions. Out of the 46 companies that participated in the programme that ran between March and September 2020, the oil and gas sector was heavily represented.