Global Environment

Supply-side factors are key to explaining the dramatic fall of oil prices from over $100 per barrel since late 2013 that have eaten into the profits of oil companies. However, oil industry observers are increasingly drawing attention to the long-term disruptive potential of new technologies, design methods, and business models that could also herald strong competitive pressures by weakening consumer demand for oil. The results of the Paris Climate Summit with its call for rapid emission reduction, early peaking and green-house-gas neutrality can accelerate this trend and herald a paradigm shift. As the world begins to embrace a low-carbon future by 2050, as evidenced in the Paris Agreement and many private sector initiatives, what are the strategic implications – and opportunities – for oil companies and resource owners?Read more