looking beyond the storm
The energy sector is facing a perfect storm, with COVID-19 and the low oil price environment placing significant pressure on firms globally.
Chief Commercial Officer, Global Energy
Most are focused on the immediate challenges created by
the pandemic, with rigs laid-up, cashflow shortages and
heightened operational risk challenging resilience right
across the sector.
But many are also developing a vision for the future, as
the sector comes under increasing pressure to change its
energy mix in the coming decades, and embrace the Energy
While this pressure is unlikely to result in an immediate
sea-change, it has rapidly climbed up the agenda within
the c-suite of many oil and gas firms with the COVID-19
pandemic acting as an accelerant. And it is forcing a rethink
when it comes to issues ranging from future investments
and exploration, M&A and talent, environmental social
governance (ESG), to alignment with the 2015 Paris
Agreement, and maintaining access to capital.
As a consequence, 2020 has witnessed an increase
in announcements from oil and gas firms articulating
their decarbonisation plans and net-zero ambitions.
The analysis in the Future of Risk: Energy aims to address
many of the challenges the sector will face along the many
different glidepath scenarios, drawing on expert insights
from across Aon and beyond, and our hope is that the
analysis will help firms build resilience for the long-term.
Much as with the current pandemic, there will be both
winners and losers; and it will be those who can understand
and adapt to the changing dynamics facing the sector in the
coming decades who will come out on top.