Oil companies risk being left behind in the transition to low-carbon energy according to a report that says the industry is not investing enough in green technology. Growth in demand for oil will slow to an annual average of 0.5 per cent in the next 20 years, while renewable energy output could expand almost fivefold, according to the study published on Friday by Wood Mackenzie, the consultancy. Similar forecasts have been heard before but this one will carry weight with oil companies because it comes from one of the industry’s leading research providers. Paul McConnell, director of global trends for Wood Mac, said the question of how to respond to the rise of clean energy represented the biggest strategic dilemma facing industry leaders. “It is clearly existential because you are talking about what happens to producers of hydrocarbons in a world where demand for hydrocarbons is slowing,” he added. The Wood Mac report said that, while there was “strong rhetoric” from oil companies on diversification into renewables, “a much greater proportion of [their] capital will be needed to deliver a material shift”. Mr McConnell highlighted Total of France, which has invested $2.5bn in battery and solar companies, among the leaders in diversification, along with Statoil of Norway, which has expanded into offshore wind power.