Global scarcity of high quality oil and gas supply will frustrate emissions targets and threaten the 2050 net-zero targets.A report, “Scraping the Barrel” released by Wood Mackenzie revealed that only 28 per cent of resources in undeveloped fields are low-cost, low-carbon “advantaged” barrels, adding that the upstream industry must look to exploration, decarbonisation and alternative fuels to meet energy transition goals.
According to the report, upstream operators may need new strategies, stressing that overall supply, total discovered and prospective oil and gas resources are more than double projected demand in 2050.
“However, truly advantaged resources, with low breakeven (resilience to low prices) and emissions are anything but plentiful. Most developed fields have little to offer and only 28 per cent of the resources in commercial undeveloped fields, roughly 49 billion barrels of equivalent (boe), are advantaged…
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