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Renewable energy tech becomes more prevalent in oil and gas exploration

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New research published by DNV GL said the oil and gas industry expects to boost investment in the energy systems of the future in 2021, as companies seek to transform for the long term.

Just a fifth (21 percent) say they will increase investment in oil projects in 2021, as the sector increasingly comes to terms with the notion that the world’s demand for oil has peaked or will peak in the short to medium term. Expectations for an increase in natural gas investment remain steady at 37 percent.

A record two-thirds of senior oil and gas professionals report that their organization is actively adapting to a less carbon-intensive energy mix in 2021, up from just 44 percent in 2018. Some 57 percent plan to increase investment in renewables, up from 44 percent last year, and about half expect to increase investment in green or decarbonized gas.

The majority of senior oil and gas professionals expect these shifts in investment will lead to a wider reshaping of the industry. Eight-in-ten (78 percent) believe there will be increased consolidation in the year ahead, up from 64 percent one year ago. Strategic reorientation may also involve asset and business sales, with 63 percent expecting more demergers, divestments and spin-offs, up from 46 percent last year.

Turmoil and Transformation, DNV GL’s outlook for the oil and gas industry in 2021, suggests priorities are shifting as investors reassess the risks of financing oil and gas projects, and as governments and industry pour billions into green recovery strategies following the COVID-19 pandemic. The research is based on a survey of more than 1,000 senior oil and gas professionals and in-depth interviews with industry executives.

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