Global Industry: Big Oil bets on gas, a potentially risky move

TOTAL CEO Patrick POUYANNE_1
Total CEO, Patrick Pouyanne

The oil majors have increasingly pivoted towards natural gas, a long-term bet that gas will prevail in a world seeking to gradually decarbonize. “In 20 years, we will not be known as oil and gas companies, but as gas and oil companies,” Patrick Pouyanne, CEO Total SA (NYSE: TOT), said at an industry conference last month.

But Bloomberg New Energy Finance says the move could be risky, and there is a chance of “peak gas demand” as renewables continue to get cheaper. BNEF says natural gas’ market share in the electric power sector will decline from 23 percent in 2016 to just 16 percent by 2040.

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