The challenge for the oil and gas industry is to both
engage and adapt to a changing policy and investment
landscape, but also to evolve in ways which don’t simply
support but contribute and perhaps even lead efforts to
decarbonize the energy system.
Around the world there is at least a gradual shift from
policies that have supported oil and gas production to
policies that instead are starting to disincentivize fossil
fuels, including carbon pricing and the European Union’s
Emission Trading Scheme. In addition to disincentives,
many governments are encouraging the use of substitute
technology and fuel, especially renewable energy.
A third method of decreasing carbon use is the organization
of circular economies, in which materials are
reused or recycled instead of disposed of at the end of
their service life.

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