Oil and gas companies' relative lack of investments in the renewable energy sector will only have a minor impact on the sector’s growth and potential, according to research from consultancy Wood Mackenzie, but analysts warn it will slow progress on carbon reduction.
As the Saudi-Russia oil price war has combined with the destruction of demand from the Covid-19 pandemic hit, massive spending cuts have swept the industry, and further reductions have not been ruled out.
This reduced cash flow may slow progress on carbon reduction, WoodMac said, potentially pushing some oil and gas players to faster portfolio decarbonisation.
