Global Data: Oil and Gas Industry Shifts Focus Back to Fossil Fuels Amid Energy Security Concerns

Energy Self-Reliance and Inflation Slow Down Clean Energy Adoption, Says GlobalData Report

 The global oil and gas industry is shifting its focus back to fossil fuels, prioritizing energy security due to concerns heightened by the Ukraine war, according to a new Global Data report. Many companies have scaled back investments in decarbonization technologies, emphasizing short-term reliance on fossil fuels to ensure supply.

Despite this shift, leading companies continue to adopt renewable power, aiming for net-zero carbon emissions by 2050, with 2030 interim targets in place. The report notes increased investments in wind, solar power, and other low-carbon options. Technologies like carbon capture and hydrogen production are being explored as part of these efforts.

Ravindra Puranik, oil and gas analyst at Global Data, highlighted that energy security concerns post-Russia-Ukraine war boosted fossil fuel demand, though high inflation and self-reliance efforts have slowed clean energy adoption. However, the long-term energy transition remains on track, with fossil fuels gradually giving way to renewables in the global power mix.

“Steel fabrication, integral to energy infrastructure, will continue to play a vital role as energy production evolves.”