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Earlier this year, Deloitte released a study that addressed a conundrum the oil and gas industry is facing: remain committed to oil or make a run toward green energy. The study, “Portfolio Transformation in Oil and Gas,” addressed several “myths” regarding portfolio diversification including a perception that oil has “lost its luster.”

However, the report does cite the need for oil companies to evaluate their portfolios amid the current energy transition and adapt accordingly.

“A confluence of factors, including climate, the pandemic, supply-demand imbalances, changing trends in end-markets and growing appetite for sustainability investments, have given oil, gas and chemicals companies the need to progress faster around portfolio transformation,” said Amy Chronis, one of the report’s authors, and Deloitte's vice chairman and U.S. oil, gas and chemicals leader. “Many companies are eager to act but are seeking guidance on the speed and extent to which they expand into new, potentially high-growth areas, be it in new regions, markets, products or technologies. By taking a strategic, purpose-driven approach, companies can sustainably and profitably build a future-ready portfolio.”

Hart Energy recently conducted an exclusive interview with Chronis, who further detailed the perceived myths of oil’s demise, while also explaining how companies can better position themselves for a future in which more energy sources will be needed.

Jump to:

Findings of report  0:45

The myth of oil’s lost luster  2:15

The myth of shale’s pain  3:43

The challenge for oil-exclusive companies  4:49

Capital allocation advice  5:33

Green project prioritization  6:36