About half of the 450 senior executives in the oil and gas industry interviewed for a global survey have expressed concern about the lack of investment in the industry, highlighting the sector's paradox between demand and decarbonisation.

Concerns ran particularly high (70 per cent) among North American executives compared to their European counterparts (40 per cent). However, there was a relatively high-level optimism (68 per cent) among industry leaders for sector growth in the coming year.

The latest DNV survey, ‘The Paradox of Petroleum - How the oil and gas sector is transforming through uncertainty', revealed that the industry is creating new revenue streams through heavy investments in alternative energy sources such as wind, solar, hydrogen, carbon capture, utilisation and storage (CCUS), and biofuels.

Operational performance remains a priority, with 62 per cent of organisations planning to increase investments in energy efficiency, and 78 per cent aiming to standardise tools and processes to cut costs. Furthermore, 82 per cent of respondents recognise the need for new operating models to achieve these efficiencies. Profitability continues to be a challenge due to the high-risk nature of oil and gas investments.

The future of the sector hinges on its ability to meet both demand from consumers and businesses and decarbonisation targets.

Ditlev Engel, CEO, Energy Systems at DNV, said: 'The oil and gas sector is at a critical juncture. Their dual task to invest in low carbon and renewable energy sources to meet climate targets while meeting global demand and maintaining operational efficiency and profitability is not an easy fix.'