The oil and gas sector is going through a major shake-up. Many of the sector leaders are looking towards increased standardization as a way of becoming more efficient and surviving in very challenging circumstances as they shift their strategies towards becoming 'energy' companies and incorporate renewables into their portfolios.
Industry leaders such as BP, Total and Shell have made firm commitments to long-term net zero targets. BP, for example, has committed to reducing oil and gas production by 40% with no exploration in new countries and lowering the carbon intensity of products it sells by 15% by 2030.
This is all before the impact of the Covid-19 pandemic on the sector which has made the market even more challenging. Air travel has been slashed and cars are being used less frequently, further reducing demand. Even after the pandemic is over, demand for oil and gas products is predicted to continue to decline with initiatives such as the increased use of electric vehicles.
“The Oil and Gas sector is feeling under pressure as an industry and looking at ways it can become more efficient and environmentally friendly,” said Bernard Shelley, Lead Standards Development Manager at BSI.