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Decision time for oil and gas companies in 2024

The corporate oil and gas sector faces a year of big decisions in 2024. Consolidation will remain in the spotlight as companies position to build scale and strengthen sustainability through the energy transition. Growth will make a comeback. But companies will not put their financial strength at risk in what threatens to be a turbulent year.

COP28 has placed greater emphasis on sustainability plans. The knock-on effect for some NOCs – a peer group that produces half of the world's oil and gas – will be bigger ambitions in low carbon and emissions abatement, particularly for those signed up to the Oil and Gas Decarbonisation Charter (OGDC).

But most NOCs are still in the business of growing upstream capacity. It is a strategy that has been emboldened by the energy security concerns of the last 24 months.

Politicisation of the energy transition might make for an unstable fiscal and regulatory environment as election cycles kick into gear in the US and Europe. But the reality is that companies must advance scope 1 and 2 emissions reduction to improve long-term sustainability.

Sustainability concerns, stakeholder pressures and low valuation multiples will drive companies to adjust their strategic playbook.

What's in the full report?

  • NOCs step up across the board.
  • Fewer, bigger independents.
  • Big Oil to close the sustainability gap.
  • Crunch time for emissions reduction.
  • Strategic playbooks adjust.

Download this white paper from Wood Mackenzie to find out more.


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