Oil and Gas Leaders Taking Holistic Approach to Reinvention by Balancing Energy Security and Sustainability, Accenture Report Finds
Reinvention ‘reset’ seen as critical to achieving a more resilient, agile, sustainable, innovative and profitable future
Oil and gas leaders are accelerating reinvention plans with a holistic approach to balance energy supply with adopting low-carbon initiatives, according to a new report from Accenture. (Graphic: Business Wire)
The report, titled “The Reinvention Reset — From Bold Plans to Pragmatic Actions,” is based on proprietary industry research and a global survey of more than 200 oil and gas executives. An update of the inaugural report Accenture published last year, the report focuses on identifying the executives’ plans to reinvent their companies according to a “5C” model encompassing competitiveness, connectivity, carbon, customer and culture.
Participants’ responses were aggregated to arrive at a Reinvention Index score for each company. The
“Faced with a host of disruptions — from longstanding underinvestment in production to the effects of the pandemic and the war in
Reinvention is dominating the industry agenda, with nine out of 10 respondents (
While embarking on such broad, holistic transformations, the report suggests oil and gas companies should aim for balanced energy portfolios to underpin the future energy system. Indeed, all companies indicate they are increasing their focus on both security and sustainability, but Leaders are taking a more balanced approach, with Laggards more focused on energy security.
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Leaders are more than twice as likely as Laggards —
43% vs.18% — to say their top portfolio priority involves investing more in natural gas and more than half (59% ) of the Leaders plan to invest 5-10% of their capital expenditures in low-carbon businesses over the next five years, compared with just45% of Laggards. -
Emissions reduction has become a key priority for Leaders with nine in 10 (
92% ) Leaders setting net-zero targets, compared with30% of Laggards.
Closing capability gaps in digital connectivity will also be critical as oil and gas firms seek to reinvent themselves — the report identified a large gap between Leaders and Laggards in this area. For instance,
“Although some companies are making progress with their connectivity efforts, more can be done to scale capabilities in this area,” Ashraf said. “To improve digitally enabled connectivity, they can combine technologies including 5G, edge computing and AI; invest in new areas like the metaverse to drive the future evolution of connected operations; and invest in people’s skillsets to unlock their potential.”
This and other Accenture reports can be explored in the company’s thought leadership app, Accenture Foresight, which provides a personalized feed of Accenture’s latest reports, case studies, blogs, interactive data charts, podcasts and more. Visit http://www.accenture.com/foresight.
About the Research
In early 2021, Accenture conducted its inaugural Oil and Gas Reinvention Index research to understand the actions companies were taking to meet the challenges of the energy transition, their progress toward reinvention and the outcomes they expect to achieve. This initiative, comprising surveys and industry research, was updated in 2022 to track the industry’s reinvention progress over time. The 2022 edition of the research included a survey of 201 C-suite executives from 201 companies globally. Responses from each of these participants were aggregated to arrive at a Reinvention Index (RI) Score for each company. The top
About Accenture
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