Many oil and gas companies will take advantage of the recent surge in oil prices to fund their net-zero pledges, Deloitte said Nov. 9, a notion that defies the common assumption that high prices would slow the energy transition.

“A strong oil price enables investment in riskier and expensive green energy solutions, such as carbon capture, utilization and storage (CCUS),” Deloitte said in its 2022 Oil and Gas Industry Outlook. “Given that no single stakeholder can provide the necessary investment and absorb all commercial risks associated with building a CCUS industry, all participants in the entire O&G value chain (from EPCI, oilfield service (OFS), upstream, and midstream to downstream) become important, as they are involved in more than half of planned CCUS projects.”

Deloitte identified five trends for the industry in its outlook, detailing how ESG challenges and the energy transition are influencing strategic decisions in the areas in M&A, OFS, retail and the workforce.

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