The transition to a decarbonized energy system is a transition like no other. Oil and gas companies are poised to lead the charge. Along the way, however, they must change what they do and how they do it. Here’s why https://accntu.re/34sLSGW

1. Decarbonizing
Energy: From
A to Zero
A practical guide to navigating the
decarbonization process.Make the move towards
a more affordable,sustainable and available future.
Wecallitpositiveenergy.
Section 1
Resetting the destination

2. Resetting the destination
Decarbonizing Energy | From A to Zero 2
This transition is different
Source: Accenture Analysis

3. Resetting the destination
Decarbonizing Energy | From A to Zero 3
The energy transition is about
delivering on a balanced purpose

4. Resetting the destination
Decarbonizing Energy | From A to Zero
26GTvolume of energy-
related emissions
attributable to the
oil and gas industry
40GTvolume of global
energy-related
emissions released
each year
4
In the oil and gas industry:
20 percent of CO2 emissions
come through extraction,
processing, transportation
and refining activities.
80 percent of CO2
emissions are released at
the point of consumption,
when hydrocarbons are
converted for other uses.
The imperative for oil and
gas companies is to limit
not only the 20 percent
of emissions that occur in
their operations, but also
the 80 percent that occur
beyond their reach.
To achieve this transition,
the oil and gas industry
will play a critical role

5. Resetting the destination
Decarbonizing Energy | From A to Zero 5
Four variables will determine the success
of the Decarbonization Transition:
New infrastructures to accommodate
new energy supplies
New technologies and ecosystems that
transform how the energy system operates
New markets and regulations promoting
the development of low-carbon solutions
New behaviors among individual and
business energy consumers (including
investors) that will change the nature
of energy demand
Catalysts for change

6. Resetting the destination
Decarbonizing Energy | From A to Zero 6
The Accenture
“stretch” case:
Achieving 80 percent
of the oil and gas
industry’s net-zero
emissions target by
2050 is possible.
Pipe dreams?
Accenture believes that the oil and gas
industry will not be able to achieve its
net-zero emissions targets by 2050.
We do believe, however, that pragmatic
actions will get the industry to
80 percent of that goal.
That conclusion is based on detailed
analyses of core energy sectors and
sub-sectors, which allowed us to
formulate a “stretch” case scenario
that is realistic and within reach.

7. Resetting the destination
Decarbonizing Energy | From A to Zero 7
The stretch goal The Accenture
“stretch” case:
Achieving
80 percent of
the oil and gas
industry’s net-
zero emissions
target by 2050
is possible.
Accenture believes a pathway
exists for oil and gas companies
to achieve 80 percent of their
net-zero ambitions. Negative
emissions can potentially close
a portion of the gap that
remains. And the momentum
from concerted and pragmatic
actions will likely bring about
additional gains post-2050.
To illustrate what is possible,
Accenture has envisioned
two “states of the world”
through to 2050.
One is the by-product
of business-as-usual (BAU)
practices and mindsets.
The other depicts the
“stretch case.” It represents
what we believe is possible,
realistic and within reach.
It will require activating
decarbonization levers across
multiple industry sectors.

8. The decarbonization
potential across multiple
sectors is enormous.
Resetting the destination
Decarbonizing Energy | From A to Zero 8

9. Resetting the destination
Decarbonizing Energy | From A to Zero 9
Shifts to reduce
emissions from
2050 business-
as-usual to
2050 stretch
Source: Accenture Analysis

10. Resetting the destination
Decarbonizing Energy | From A to Zero 10
Decarbonization will be driven by shifts
affecting both supply and demand
Impact on final energy demand
Energy efficiency (-7 GT CO2)
Process and material efficiency (-7 GT CO2)
Final demand management (-5.4 GT CO2)
Carbon capture, utilization and
storage (CCUS) (-2.8 GT CO2)
Circularity solutions (-2.4 GT CO2)
Impact on final energy supply
Coal to solar and wind (-11 GT CO2)
Fossil fuel to electricity
consumption (-5.2 GT CO2)
Coal to gas (-2.1 GT CO2)
Hydrogen (-1 GT CO2)
Biofuels (-0.9 GT CO2)

11. These shifts have the
potential to eliminate
42 GT CO2 by 2050.*
Resetting the destination
Decarbonizing Energy | From A to Zero 11

12. Resetting the destination
Decarbonizing Energy | From A to Zero 12Source: Accenture Analysis
Global energy emissions shifts

13. Achieving the stretch
goal requires oil and gas
companies to take three
sets of actions today.
Resetting the destination
Decarbonizing Energy | From A to Zero 13

14. Resetting the destination
Decarbonizing Energy | From A to Zero 14
Success requires all
three sets of actions
to be activated.
Source: Accenture Analysis

15. Resetting the destination
Decarbonizing Energy | From A to Zero 15
Clean the Core
actions can
lead to a
20+ GT CO2
emissions
improvement
by 2050.
Clean the Core
Clean the Core activities minimize emissions
and maximize efficiency from current operations,
infrastructure and value chains.
Our stretch case analyses show that
certain actions—such as maximizing efficiency,
managing demand and enhancing operating
practices—can help leaders achieve as much as
a 21 GT improvement in CO2 emissions by 2050.
The sectors that will see the greatest benefit
from Clean the Core actions are asset-intensive
industries: hydrocarbon extraction and
processing, heavy transportation and aviation.

16. Resetting the destination
Decarbonizing Energy | From A to Zero 16
Accelerate
the Transition
actions canlead
toa20GTCO2
emissions
improvement
by 2050.
Accelerate the Transition
Accelerate the Transition actions replace
existing sources of energy and demand
with available and competitive cleaner
and zero-emission alternatives.
In our stretch case scenario, these actions
represent over 45 percent (or approximately
20 GT) of the potential improvement in emissions
through 2050. Of that, approximately 10 GT
reduction will come from the power sector.

17. Resetting the destination
Decarbonizing Energy | From A to Zero 17
Extend the
Frontier actions
can lower
emissions by
2 or 3 GT by 2050.
Extend the Frontier
Extend the Frontier actions
are focused on adopting and
scaling new energy sources,
processes and technologies
beyond what is commercially
and technically possible today.
These solutions can be used
to decarbonize parts of the
energy system that otherwise
can’t get close to net-zero
emissions due to their
reliance on hydrocarbons.
Our stretch case analyses
found that up to 20 percent
of global emissions not
decarbonized by Clean
the Core or Accelerate the
Transition actions can be
addressed by Extend the
Frontier solutions.

18. Resetting the destination
Decarbonizing Energy | From A to Zero 18
The time is now
The path to achieving
their future ambitions
is open. It’s time for
the industry leaders
to make their moves.

19. Navigating the new route
Decarbonizing Energy | From A to Zero 19
Muqsit Ashraf
Senior Managing Director
Global Energy Industry Sector Lead
Muqsit is a Senior Managing Director and Global
Industry Lead for Energy. He advises Energy
executives and senior stakeholders on strategy,
transformation, and technology/innovation.
Muqsit also serves on Accenture's Global
Leadership Council. Muqsit has nearly 20 years
of experience working in the energy industry
across the value chain—upstream, oilfield
services, downstream and petrochemicals.
Muqsit specializes in corporate strategy,
operating model design and large scale business
(and digital) transformation programs. Muqsit
sponsors Accenture's partnership with the World
Energy Council, manages the relationship with
the World Economic Forum's Energy team, and
is part of Accenture's Global Energy Board. He
features regularly on major industry conferences
and forums, and publishes internally and
externally. Before joining Accenture in 2015,
Muqsit managed the North America business
for SBC (Schlumberger Business Consulting).
Tom Beswetherick
Senior Manager – Energy,
Strategy & Consulting
Authors
David Rabley
Managing Director – Energy,
Strategy & Consulting
Tom is a Senior Manager within Accenture
Strategy & Consulting’s Energy practice.
He has extensive experience working with
oil and gas companies and governments
in the areas of portfolio strategy, M&A
and capability development across North
America, Asia Pacific and Europe. Having
started his career in clean technology-
related research and publication, Tom
recently returned to this area and is a
member of Accenture’s growing Energy
Transition practice. He now focuses on
conducting research, advising clients
and publishing articles.
David is a Managing Director based in
Houston and leads the Accenture Energy
Transition practice for oil and gas globally
and in North America. With over two
decades of experience in the energy
industry, David collaborates with majors,
national oil companies, US-based
independents and oilfield services
companies to develop and execute
strategies and programs to understand
and lead the energy transition, transform
and protect value for their stakeholders,
society and for the environment.
David works closely with international
organizations including the World
Economic Forum and the World Energy
Council with a focus on future energy
scenarios and priorities for the successful
development of the energy system.

20. About Accenture
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