ENERGY TRANSITION SERVICE

The oil and gas industry has lost its seat at the table in critical energy policy discussions. Can it get invited back?

Biofuels have had a complicated history, with a number of uncertainties still affecting future growth prospects.

This year’s announced low-carbon spending through Q3’21 reached $39 billion – already $10 billion above full 2020 levels. The unprecedented $22 billion of investments announced in Q1’21 certainly provides a boost to the annual total. But Q3’21 announced investment levels are in line with the rapid growth trend of recent years – and at $9.7 billion, were up 28% from Q2’21. European Majors, especially TotalEnergies, Shell, BP and Equinor, again lead investments by value, but the peer group’s share of the total fell slightly from recent quarters to average 91% through Q3’21. A rebound in announcements by NOCs and US Majors is driving this shift, although Global Independents have stayed quiet. Renewable power remains the top spending category, but its share dropped from 94% in Q1’21 to 67% in Q3’21 as investments in low-carbon fuels, e-mobility and CCS have picked up. We expect the composition of investments to evolve in favor of low-carbon fuels, particularly hydrogen, and CCS in 2022 and beyond, as more firms seek to implement more varied transition plans. To better capture this range of approaches, we have added six new companies this quarter, with a focus on Adnoc, PTT and Wintershall Dea in this report.