Despite the upheaval from COVID-19, energy and industrial leaders will likely continue to commit their companies to decarbonization programs, according to Deloitte.
The consultancy reported Wednesday that it has surveyed 600 C-suite executives and other senior corporate leaders about low-carbon trends and strategies.
“This year has turned out to be a decisive one for the energy transition,” Stanley Porter, Deloitte LLP’s vice chairman and the firm’s U.S. energy, resources and industrials leader, remarked in a written statement emailed to Rigzone. “While 2020 brought tremendous headwinds for companies on multiple fronts, leaders across the energy and industrial sectors haven’t lost sight of the climate crisis. Decarbonization priorities have become deeply embedded into business strategies and created a momentum for action that will not easily be compromised by present circumstances.”
Pointing out that decarbonization is expected to slow the oil demand growth rate long-term, Deloitte noted that most oil and gas leaders surveyed nevertheless view it as a “strategic imperative” for their industry. The consultancy stated that high-level decision-makers “appear to recognize” the oil demand outlook and “are rethinking where and how they do business in a decarbonizing world.” Specific survey findings include:
- Most (68 percent) CEOs surveyed noted that natural gas and other low-carbon fuels represent a key component of their decarbonization strategy.
- Consumer support and regulatory mandates including policy incentives constitute the major drivers for the energy transition, according to oil and gas execs’ responses.
- Forty-nine percent of survey participants from oil and gas firms stated they plan to switch to cleaner or renewable fuels in their facilities and field operations.
- A majority (56 percent) of participants in the oil and gas sector revealed a link between executive compensation and plan metrics to curb fossil fuel reliance.
- More than 60 percent of respondents noted that a low-carbon future would affect their organizations in a positive manner.
“The COVID-19 crisis has highlighted many of the attributes that could accelerate the energy transition as companies re-evaluate supply chains, collaborate within and across sectors and pioneer capex-light scalable solutions with digital technologies and analytics at the core,” commented Kate Hardin, executive director with the Deloitte Research Center for Energy and Industrials. “The coming months will likely show how enduring these innovations may prove.”
The full report, with additional conclusions, is available on Deloitte’s website.
To contact the author, email mveazey@rigzone.com.
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