Companies Must Adapt Model to Unlock Upstream Funding

There are still enough banks and capital willing to fund oil and gas assets, but companies must offer “a model that fits better with how banks think about what your company should be doing going forward”, according to Euan Shirlaw, the CEO of Danish oil and gas company BlueNord. This likely means being more natural gas focused, having explicit sustainability targets, and having CCS as part of your business, as it “positions you on the right end of the spectrum” as opposed to a more mature oil-based portfolio. There is more appetite to lend to companies with CCS projects, but at the same time “without a lot of clarity around what the business model is, it’s quite difficult to come up with a bankable investment case,” he says.