As the global push toward decarbonization accelerates, the oil and gas industry faces a defining moment: will it lag behind as the world pivots toward cleaner energy, or will it leverage its expertise, capital, and infrastructure to lead the energy transition?
Historically, the sector has been painted as part of the problem, but today, it has a rare opportunity to be part of the solution. By embracing new energy technologies, investing in innovation, and aligning with sustainability goals, oil and gas companies can transform from legacy players into drivers of the low-carbon economy. Here’s how.
Here’s how.
The business case for transition
Global energy systems are undergoing unprecedented changes. Climate commitments under the Paris Agreement, regulatory frameworks like the EU Green Deal, and investor pressure for ESG performance are pushing industries to reduce carbon intensity, mitigate risks, and unlock new value streams.
For oil and gas, the opportunity isn’t just about avoiding stranded assets, it’s about capturing competitive advantage:
Key areas of opportunity
1. Hydrogen integration
Hydrogen, particularly green and blue hydrogen, has enormous potential as a versatile, low-carbon energy carrier. Oil and gas companies are uniquely positioned to lead:
- Repurposing gas infrastructure for hydrogen transport and storage
- Deploying steam methane reforming (SMR) with carbon capture (for blue hydrogen)
- Investing in electrolysis projects using renewable power (for green hydrogen)
- Reusing gas infrastructure for hydrogen transport and storage
Hydrogen hubs, blending projects, and pilot facilities are already reshaping industrial energy systems, and oil and gas players are at the forefront.
2. Carbon capture, utilization, and storage (CCUS)
Decarbonizing hard-to-abate sectors like steel, cement, and chemicals hinges on CCUS, an area where upstream and midstream expertise can make the difference.
- Capturing CO₂ at industrial sites
- Transporting and safely storing CO₂ in geological formations
- Exploring carbon utilization pathways (synthetic fuels, materials)
CCUS is not just a regulatory compliance tool; it’s a future revenue stream for companies that move early.
3. Renewable energy and electrification
Many oil and gas operators are integrating renewables into their operations:
- Powering offshore rigs with offshore wind
- Electrifying upstream processes to reduce Scope 1 and 2 emissions
- Investing in hybrid projects combining solar, wind, and energy storage
This diversification reduces operational carbon intensity and positions companies for long-term resilience.
4. Methane emissions management
Methane, a greenhouse gas over 80 times more potent than CO₂ in the near term, is a critical focus. Leading companies are:
- Deploying continuous leak detection and repair (LDAR) technologies
- Participating in global methane pledges and reporting frameworks
- Leveraging digital tools to track, report, and mitigate methane losses
Cutting methane isn’t just good for the climate, it’s an efficiency and revenue play.
The role of leadership
For executives, the energy transition is no longer an “if”, it’s a “how fast” and “how well.”
To succeed:
- Set clear, measurable decarbonization goals aligned with science-based targets
- Embed sustainability into core business strategy, not as a side project
- Collaborate across sectors, supply chains, and governments to scale impact
Critically, leadership must communicate the value of transition efforts to investors, employees, and the public, transforming reputation risk into reputational strength.
Shaping the future together
The energy transition is not about eliminating hydrocarbons overnight, it’s about transforming the system over time, balancing security, affordability, and sustainability.
Oil and gas companies that act boldly now will:
- Capture early-mover advantages in emerging markets
- Attract top talent seeking purpose-driven work
- Build portfolios that withstand future policy and market shifts
This is the moment for the oil and gas industry to redefine itself, not as the industry of the past, but as the energy architects of the future.
By investing in new energies, prioritizing decarbonization, and embracing innovation, the sector can transform its role in the global economy and secure its place at the center of the net-zero transition.
The world is watching, and the leaders will be those who move first, fast, and with purpose.
This article was written by specialist Malvin Delgado and published as part of the fifth edition of Inspenet Brief magazine, August 2025, dedicated to technical content from the energy and industrial sectors.
