The new world order of the oil and gas industry surrounds a low-carbon and/or new energy focused business model. And, as capital allocation for these projects grew significantly in 2021, this implies favorable economics for low-carbon producers in 2022.

Nicholas Fulford, the senior director of energy transition for petroleum consulting firm GaffneyCline, said net-zero commitments from all supermajors and most NOCs paired the introduction of new tax credit incentives indicates a new horizon for oil and gas portfolios going into 2022.

“We’ve seen carbon capture and CCUS projects come to age and there is a real following now within the investment community and a real belief in that technology going forward,” Fulford said.

He continued, “There is a level of sophistication around the various benefits and incentives that have been introduced globally to encourage low-carbon investment. Now, some of the more sophisticated players are finding that by mixing and matching a tax relief and a traded commodity, it’s possible now to build up a real kind of revenue base for low-carbon technologies.”

Jump to a topic:

  • Low-carbon trends of 2021 (0:33)

  • Legislation and tax incentives (3:15)

  • Advice for new players (4:59)

  • Capital allocation (8:28)

  • Global implications (10:40)

  • Predictions (12:07)

  • Oil and gas hurdles (13:30)

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