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.
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.”