Despite a rebound in oil prices, resurgent waves of the COVID-19 show the industry’s recovery remains fragile. In addition to dealing with the volatility of the near-term market environment, upstream companies face a longer-term challenge of reducing emissions, with growing pressure from regulators, investors and other stakeholders. Although many upstream companies have made considerable progress in meeting climate change goals, they will have to play a bigger part going forward as stakeholder pressure and expectations continue to rise. Boston Consulting Group (BCG) has outlined a cost-effective approach, which offers to shrink a company’s carbon footprint and strengthen its social license to operate and increase revenue growth. “The industry is facing a challenging time. Upstream players are making spending cuts, and it is likely they will focus on core operations and avoid making additional investments,” Thomas Baker, managing director and partner with BCG, told E&P Plus. “That being said, we think there is still a role for decarbonization, and in fact, the current environment creates an important opportunity to potentially accelerate these activities. Many of these measures can be cost-effective and provide lower capex, improved output and have a financial benefit for the players.”

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