2022 Outlook: ESG, M&A Opportunities to Impact Oil and Gas

The ongoing need for reliable and affordable energy, ESG considerations, capital discipline and M&A opportunities are expected to drive the energy sector in 2022.

Mitch Fane, Ernst & Young LLP

No matter the ESG strategy that oil and gas companies choose to take, access to capital will be a critical factor in future success. (Source: Shutterstock.com)

As 2022 approaches, it is increasingly clear that next year—and potentially the next five—in the oil and gas industry will be defined by a push and pull between capital markets’ reluctance to invest in oil and gas and the dissonance among government, consumer and investor perceptions about the speed with which oil and gas should or can be replaced. 

Market developments in 2021 make structural undersupply of oil and gas commodities self-evident. In prior times, that would mean high returns and a rush to invest, but these are not prior times.  

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