Despite significant energy challenges, a recent survey by DNV shows that 68% of leaders in the oil and gas industry are optimistic about growth in the coming year.
The survey, titled “The Paradox of Petroleum,” gathered insights from 450 senior professionals in the oil and gas sector.
It found that 64% of the respondents believe the pace of the energy transition is accelerating.
The industry is investing in alternative sources like wind, solar, hydrogen, carbon capture, utilisation and biofuels, creating new revenue opportunities despite challenges such as higher interest rates and supply chain issues.
Geopolitical events, including the conflict in Ukraine, have heightened focus on energy security, contributing to the sector’s positive outlook.
However, concerns persist over insufficient investment in new oil and gas capacity, with more than half of executives noting global concerns and North American executives particularly worried (70% compared to 40% in Europe).
Improving operational efficiency is a top priority, with 62% planning increased investments in energy efficiency and 78% aiming to standardise tools and processes to cut costs.
Additionally, 82% recognise the need for new operational models to achieve these efficiencies.
Profitability remains challenging due to high investment risks, prompting companies to adjust capital strategies towards renewable energy sectors.
Attracting skilled workers is critical, with 66% prioritising workforce development for expansion, decarbonisation and modernisation efforts.
Environmental impact reduction is also a major focus, with 61% planning increased investment in decarbonisation.
Ditlev Engel, Chief Executive Officer, Energy Systems at DNV, said: “The oil and gas sector is at a critical juncture.
“Their dual task to invest in low carbon and renewable energy sources to meet climate targets while meeting global demand and maintaining operational efficiency and profitability is not an easy fix.”
