Is oil and gas on the verge of extreme makeover?

Nearly two-thirds of the sector’s firms plan either a ‘fundamental change’ or a ‘radical reinvention’ of their businesses in the next three years, according to a new study

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The oil and gas industry is undergoing a complete restructuring process, a new study suggests.

Research by Accenture estimates nearly 66% of oil and gas firms have put plans in place to either ‘fundamentally change’ or ‘radically reinvent’ their businesses in the next three years.

The report also shows an additional 25% are looking to undertake ‘significant changes’ with just 9% responding with modest changes.

More than a third of oil and gas companies feel optimistic that they will have margin improvements of 20% or more coming from the low carbon direction of their businesses.

The survey of 214 executives from 179 oil and gas companies across five continents also shows 97% of them have placed the environmental performance of their operations as a priority, with one-third naming it their top priority.

In addition, hydrogen and renewable energy were selected as the two low carbon segments of the energy market with the largest anticipated growth potential.

Muqsit Ashraf, Senior Managing Director at Accenture, said: “Competition from new energy sources, environmental accountability, talent scarcity, investor apathy and the Covid-19 pandemic have led most oil and gas companies to realize the need to transform to ensure profitability, embrace sustainability and maintain their relevance.”

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