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The energy transition in the oil & gas sector: a reality check

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: Geopolitical, financial, and technical challenges are slowing the energy transition in the oil and gas sector, despite increasing climate regulations like the ISSB’s new standards and the EU’s CSRD

🔭 The context: The oil and gas sector faces a dual pressure: adapting to stringent climate regulations and maintaining traditional business models amidst geopolitical volatility
• Recent shifts emphasize energy security, reducing the immediate push towards clean energy

🌍 Why it matters for the planet: Continued reliance on hydrocarbons complicates global decarbonization efforts, highlighting the need for robust climate risk mitigation strategies even as traditional energy systems persist

⏭️ What's next: Regulatory pressures on oil and gas companies will intensify, demanding better climate risk management and transparency
• However, the pace of transition will likely remain uncertain due to geopolitical and macroeconomic instability

💬 One quote: “The ESG reprieve is likely to be temporary. The oil and gas sector remains unloved in the West, particularly in Europe, and the regulatory pressures will continue to ramp up.” - Dr. Valentina Kretzschmar, Vice President Consulting, Climate Risk and Strategy, Wood Mackenzie

📈 One stat: No major country is on track to meet the Paris-aligned commitments, reflecting the broader challenges in achieving global climate goals

Click for more news covering the latest on energy transition

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