Oil services at a strategic crossroads
2020 was a tumultuous year for the global oil services sector. Once more the industry had to deal with a brutal downturn, as it tackled the twin challenges of an oil supply and demand shock while dealing with the operational adversity posed by a global pandemic.
The other major force that is shaping the sector is the energy transition in its broadest sense. Environmental Social and Governance (ESG) themes are increasingly impacting how investors assess their investments.
As oil service companies consider their options in a rapidly evolving energy market, they will need to choose a pathway. One that is focused on hydrocarbons or one that pivots to low carbon.
“Companies need to be clear on what their role is in the energy transition as core revenues decline.”
We interviewed stakeholders from the oil services sector and the topics that emerged from our conversations are captured in our latest report.
In the course of our interviews, a wide range of opinions were offered with a number of key themes emerging.
The pace of energy transition is gaining momentum
Some companies have skills which are more transferable across sectors
A sustainable investor proposition needs to be developed
The sector needs to do more to positively communicate its role
Internationalisation is also still a valid growth strategy in hydrocarbons