Energy Solutions by McKinsey

Methane makes up nearly half of upstream oil and gas’s GHG emissions. With the right strategies, the sector could cut global emissions by up to 4% by 2030. Achieving this impact requires around $200 billion in investment, but the environmental and financial returns could be substantial. Our latest analysis explores how proven technologies and focused partnerships can turn this goal into reality. Discover what’s needed to make this impact: https://mck.co/3OhiXgj #McKinseyInsights #Methane #NetZero #EnergyTransition

The global energy transition is entering a new phase, marked by rising costs, complexity, and increased technology challenges. Our recently refreshed Global Energy Perspective and inaugural Global Materials Perspective both highlight the intertwined nature of these two value chains. 💡  Find out more about where these two industries are today and our outlooks for what the future might look like here: https://mck.co/4hBuDrL https://mck.co/4hLannm #GlobalEnergyPerspective2024 #GlobalMaterialsPerspective2024 #EnergyTransition 

Despite strong recent financial performance, new imperatives are playing out for the industry across sustainability, affordability, security of supply, and competitiveness. How the industry will adapt to move with the changing times remains to be seen, but companies need a solid strategy to ensure their success beyond current, buoyant market conditions. Find out what questions CEOs will need to resolve to generate value beyond 2030 in our latest article: https://mck.co/48KgXX8 #OilAndGas #EnergySecurity #EnergySupply

Renewable capacity is expected to account for approximately 50 percent of US energy generation capacity by 2030. In some markets, such as the California independent system operator, renewable energy sources account for 100 percent of energy supply during certain hours, resulting in routinely negative prices in the middle of the day followed by a massive ramp-up in dispatchable generation and imports to meet the evening peak load. No player is immune to the changes underway in North American power and gas trading. Read our latest article to find out how to successfully navigate the transition ahead: https://mck.co/4fpnKIl #NaturalGas #Commodities #EnergyTransition

What does the future hold for the oil and gas industry? Our newest article outlines the sector’s challenges and trends, and what thriving in a post-2030 world will look like. Striking the right balance across sustainability, affordability, competitiveness, and supply security will be instrumental for executives navigating the ever-changing industry. Read more about how oil and gas executives are future-proofing here: https://mck.co/48KgXX8 #OilAndGas #EnergySecurity #EnergySupply

Power and gas trading is experiencing a significant upswing, with the global trading value pool reaching an impressive $33 billion in 2023. This marks a substantial 50% increase from the previous year. But that’s only part of the story. The rise of renewable energy has introduced greater volatility into gas and power markets, increasing the value of optionality and drawing new market entrants. Read our latest article to find out more about the unique opportunities and challenges this is creating for both new and incumbent market participants. https://mck.co/4fpnKIl #NaturalGas #Commodities #EnergyTransition

The global energy transition is entering a new phase, marked by rising costs, complexity, and increased technology challenges. Our recently refreshed Global Energy Perspective and inaugural Global Materials Perspective both highlight the intertwined nature of these two value chains. 💡    Find out more about where these two industries are today and our outlooks for what the future might look like here: https://mck.co/4hBuDrL https://mck.co/4hLannm   #GlobalEnergyPerspective2024 #GlobalMaterialsPerspective2024 #EnergyTransition 

What role can the oil and gas industry play in balancing energy affordability, security of supply, competitiveness, and sustainability? When looking at how the industry can strike the right balance between these four factors, five trends emerge that could impact the future of the industry — upstream growth and consolidation, reshaping the downstream sector, diverging new energy bets, an observed performance push in the industry, and a more focused sustainability agenda.   Find out more about how these themes are shaping the industry in our latest article: https://mck.co/48KgXX8 #OilAndGas #EnergySecurity #EnergySupply

2023 marked a turning point for offshore wind, with operational & maintenance costs rising by 7% after years of stability. Increased component expenses and supply chain challenges are reshaping the landscape, but there’s still untapped potential for those ready to adapt. By rethinking O&M strategies, operators and owners can unlock up to €2 billion in value across Europe. Read our latest blog to find out more: https://mck.co/40DhEzB #OffshoreWind

The share of renewables in US power generation is projected to grow significantly, from 25% today to 45% by 2030. However, the intermittent nature of solar and wind power often creates a mismatch between energy supply and demand. One way to manage risk in a renewables-heavy portfolio is to diversify risk exposures, and add flexible assets including batteries and gas. Read our latest article to find out more: https://mck.co/40vYonF #RenewableEnergy