Regions such as the U.S. Gulf Coast will have the upper hand over Russia, says energy consultancy Wood Mackenzie. Read more here
Oil majors that want to reduce their carbon footprint will have to shift their activities to energy basins where drilling rigs can be powered by renewables and which have ample space for carbon sequestration, said Andrew Latham, vice president at Wood Mackenzie, in a new report.
The shift will mean that several oil and gas fields that dominate the energy landscape today — from Alaska’s North Slope to Russia’s Yamal Peninsula and Venezuela’s Orinoco Belt — will be disadvantaged and face a flight of capital in the future. Such places have limited infrastructure to develop renewables at scale.
Meanwhile, regions with easier access to clean energy are likely to flourish. The U.S. Gulf Coast and Permian Basin, Australia’s North Carnarvon and the Rub al Khali in the Middle East are positioned to be “future energy super basins” that will draw coordinated investment in drilling, renewables and carbon capture for decades to come, Latham said.Article content