How Oil & Gas Companies are Framing Energy Transition Strategy | Strategic Decisions Group

Investors, consumers, and regulators are now expecting oil & gas companies to monitor and manage not only direct emissions from their own operations (known as “Scope 1”), but also emissions from the energy sourced to run their operations (Scope 2). If Scope 3 emissions—those that result from the end-user’s use of refined hydrocarbon—were to be included as well, it would fundamentally alter the oil & gas business and require companies to transform their operations. Finding a profitable path to reduce emissions is a decision with a high degree of analytical and organizational complexity. The optimal path depends on the company’s asset type, recovery technologies, emission reduction goals, core capabilities, and the regulatory environment in which it operates. While there is no universal recipe for a successful energy transition strategy, oil & gas companies can find their own path to reducing emissions through a carefully designed process with analytical rigor—just as they now make decisions for their core oil & gas operations.​