Exploration and production (E&P) companies are set to face one of the biggest challenges – if not the biggest challenge ever – to their business models. This challenge is a combination of investor and society concerns about the oil industry’s contribution to climate change and concerns about global oil demand peaking in just a decade or two. And this challenge could result in too few new good opportunities for project development for just a few oil explorers, IHS Markit says. “[T]here may well be too few ‘quality,’ competitive investment opportunities for the E&P industry as a whole; parts of the industry will not be able to attract investment capital,” Jerry Kepes, Keith King, and Siddhartha Sen of IHS Markit write. The exploration and production sector is indeed facing many dilemmas. First, analysts expect global oil demand to peak at some point over the next two decades – there’s the […]