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Net Zero Commitments to Delay, Says EIC Survive and Thrive 2023 Report

The report displays a rapid-changing global energy landscape, facilitating investors and business owners with once-in-a-generation levels of growth and profitability after ten years for the energy sector.

July 26, 2023. By Nivedita Ojha

Despite rising demand and aspirational country commitments for net zero, the energy supply chain is shifting into oil and gas, triggered by a lack of consistent and profitable work in green projects, raising concerns that net zero 2050 commitments will also be delayed. This is according to the Energy Industries Council's (EIC) 7th Survive and Thrive report.

According to the EIC Report, the world's oil and gas markets are experiencing a period of significant growth and a return to boom times. It refers that oil and gas projects are more valuable and more expected to proceed with complete funding compared to renewable and transition technologies including wind and hydrogen.

The report shows that oil and gas segments, comprising upstream, midstream, and downstream, have the highest FID rates, averaging around 20 percent for projects with startup dates between this year and 2028. In contrast, renewable energy and energy transition technologies have much lower FID rates. Offshore wind at only 8 percent, hydrogen at 3 percent, carbon capture at 2 percent, and floating offshore wind at 1 percent.

The report displays a rapid-changing global energy landscape, facilitating investors and business owners with once-in-a-generation levels of growth and profitability after ten years for the energy sector.

The EIC Survive & Thrive annual report gives early warning signals of policy challenges that are starting to rear their heads, with its unique approach to research, centred on detailed interviews with nearly 100 top leaders of many of the world’s leading energy supply chain companies, representing a diverse range of sizes, countries, technologies, strategies and approaches to growth.

Stuart Broadley, Chief Executive Officer of the EIC, stated, “The much lower level of funding for green projects, compared to hydrocarbons, highlighted in this report, is having a direct impact on energy supply chain businesses. They are not seeing enough renewable and transition related work cascading down into their order books. They can’t wait for policy pledges anymore, so they look to more active markets like oil and gas to support their growth plans.”

The EIC's Survive and Thrive report caters as a call to action, urging stakeholders to work with the EIC to listen to the needs of the global energy supply chain and work collectively to address the challenges faced by businesses in expanding into new markets, achieving net zero targets, and driving the energy transition.

The EIC was established in 1943. The company is based in London and has offices in Dubai, Houston, Kuala Lumpur, and Rio de Janeiro, comprising EIC DataStream, a global database of energy projects in development, and EICAssetMap, an all-inclusive operating assets information service.
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