“This is, bar none, the most defining issue that this industry is facing the next couple of decades,” Katherine Blue, KPMG’s U.S. national leader for ESG and climate services, said during a recent webinar. “We’re all very familiar with the discussion around climate risk potentially leading to stranded assets in the energy industry. We know the effects of carbon pricing. We know what that could look like through a portfolio.”

But the oil and gas industry also produces critical products that in some cases can’t be replaced, Blue said. The process of engaging in the energy transition to cleaner fuels involves trade-offs, government policy changes, technological speed, innovation, market pricing and a huge challenge of recruiting a new generation of talent that possesses different skill sets than those of the past.

“It’s really an interesting balance and one that none of us have the right solutions to right now,” she said.

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