The Silicon Review ^Asia

The oil and gas industries are in a state of flux. The upstream supply now has to be low cost, low risk and, importantly, lower carbon content, powered by the transition to coal. Lenders and shareholders are pursuing simple emission reduction strategies while, in the first place, expecting the returns which attracted them to oil and gas companies. Corporate strategies are now dynamic as corporations expand their emphasis on long-life gas ventures, or even begin to turn them into broad-based energy suppliers.

The European majors may be the best drivers in their response to the energy transition, but are outstripped by Repsol's commitment to net zero carbon emissions from Scope 1, 2 and 3 by 2050. The declaration did not go unnoticed in the boardrooms of Asia's national oil companies (NOCs). That's because Asian NOCs don't live in a world of fantasy. The energy transition from Tokyo to Jakarta is the contentious issue, with management well aware of having to react to what is now the single most important challenge facing their companies.The Asian NOCs understand, in general, that doing nothing is no longer an option. But the majority struggle with their response, with very few exceptions. Some organizational changes integrating companies with alternative technologies and moderate investment in renewables are underway.