Faced with record-high cash flows, oil and gas (O&G) companies have decisions to make—where to invest, and how much. But the future path is not easy due to critical uncertainties including price volatility and supply and trade disruption in the long road to a low-carbon world.
Over the next decade, O&G companies could have a key role in striking the balance between energy security and energy transition, while helping commercialize essential low-carbon technologies. Recession worries and energy policy shifts present downside risks to energy markets. But disrupted trade flows and ongoing financial discipline of O&G companies, along with low inventories and spare capacity could limit any significant downside despite volatility in energy prices.
This report from the Deloitte US Center for Energy and Industrials explores investment choices and strategies of global upstream O&G producers.