Note: All figures shown are based on self-reported expectations in the next three years. Global
Achieving these types of returns requires a focused strategy for reinvention which must be grounded on three building blocks:
The journey starts with a clear purpose—one that drives relevance by balancing critical elements: energy equity, energy sustainability and energy fundability. These elements serve as a north star for reinvention. Regardless of the course the journey may follow, all companies will need to do their part to deliver reliable energy to all, achieve carbon net neutrality by 2050 and deliver competitive returns to investors.
O&G companies must also identify the archetype they aspire to become. We believe there are three end states from which to choose—The Energy Major, The Oil & Gas Specialist and The Low-Carbon Leader. Each archetype will play a critical role in the world’s energy future. Each will require a different path to reinvention.
Solving for the 5Cs
Finally, our research shows that reinvention must anchor on five key areas we call the "5Cs": Competitiveness, Connectivity, Carbon, Customer and Culture. While every O&G company will need to prioritize and address the 5C dimensions of change, the specific actions needed to achieve their reinvention will differ, depending on the archetypal role they hope to play in the future energy system.