Automation changes the economics of operations
Where robotics, autonomous operations and intelligent control can create material gains in throughput, safety and service performance.
Read articleEnergy security has returned to the center of oil and gas strategy while disrupted flows and infrastructure expose the limits of assuming smooth global market integration
We see oil and gas companies balancing near-term supply opportunity with portfolio duration, LNG uncertainty, capital discipline and the longer transition of energy demand.
Oil and gas companies enter September 2026 after renewed geopolitical disruption demonstrated how quickly physical constraints can alter energy economics. LNG markets have been particularly affected by disruption in Middle Eastern supply and shipping routes, while refining and transportation bottlenecks have supported unusually tight product markets even where crude availability is less constrained. These conditions strengthen the strategic value of resilient supply and infrastructure, but they do not remove longer-term uncertainty around demand, electrification and decarbonization. Companies must therefore allocate capital between current scarcity value and assets whose economics remain robust through very different energy futures.
Focus
Oil and gas markets are again being priced through physical security and geopolitics
Supply disruption, strategic routes and shifting demand are creating an uncomfortable mix of high prices and uncertain long-term consumption.
Read nowStrategic Challenges
How should producers invest when security risk rises but demand growth weakens?
The challenge is balancing near-term scarcity economics with long-lived assets exposed to changing demand, technology and policy.
Read nowStrategic Impacts
Energy security is extending the strategic life of some oil and gas infrastructure
Disrupted trade routes and supply uncertainty increase the value of flexible production, storage and alternative export capacity.
Read nowObserved Patterns
Oil companies often treat strong prices as evidence of strong structural demand
Geopolitical scarcity can support prices even while underlying consumption patterns weaken in important markets.
Read nowStrategic Challenges
How should producers invest when security risk rises but demand growth weakens?
The challenge is balancing near-term scarcity economics with long-lived assets exposed to changing demand, technology and policy.
Read nowStrategic Impacts
Energy security is extending the strategic life of some oil and gas infrastructure
Disrupted trade routes and supply uncertainty increase the value of flexible production, storage and alternative export capacity.
Read nowObserved Patterns
Oil companies often treat strong prices as evidence of strong structural demand
Geopolitical scarcity can support prices even while underlying consumption patterns weaken in important markets.
Read nowIndustry Challenge
Oil and gas companies must navigate geopolitical scarcity and long-term transition
Oil and gas companies are operating through an unusual combination of near-term supply disruption, high geopolitical risk and longer-term uncertainty over demand. Energy security has returned to the center of policy while transition investment continues, making capital allocation more complex rather than less. Operators must protect cash flow and supply continuity without overcommitting to projects whose economics depend on a single price path. The challenge is to manage portfolios across multiple scenarios, improve asset productivity and retain strategic flexibility as markets rebalance.
Future Outlook
Future energy portfolios will reward optionality across molecules, power and carbon
The future of oil and gas will be shaped by how companies use existing capabilities, infrastructure and capital to compete across a broader energy system. Hydrocarbons will remain material, but value pools will increasingly interact with LNG, power, carbon management, low-carbon fuels and industrial decarbonization. The strongest portfolios will avoid treating transition as a binary exit from oil and gas. Instead, companies will sequence investment according to market economics, policy and customer demand, using scenario-based capital allocation to preserve returns while building optionality.
Market Outlook
Oil markets are tight and disrupted as Middle East supply losses reshape 2026
The oil market is unusually disrupted in 2026. The IEA's August assessment lowered global supply expectations materially because of losses linked to the Middle East conflict and Russia, while elevated fuel prices and constrained product availability are weakening demand. Refining margins have risen sharply as diesel, jet fuel and gasoline markets tighten, even as crude fundamentals vary by region. The result is a market dominated by geopolitics, shipping access and product bottlenecks rather than a conventional demand cycle. Energy security and operational continuity remain central.
POV
High oil prices can coexist with a weaker long-term oil thesis
Management should distinguish scarcity premiums from durable demand before translating today's market into tomorrow's capital plan.
Read nowOur approach
Evaluate hydrocarbon portfolios through physical market economics and multiple plausible energy-transition pathways
Our approach� connects resources, production costs, infrastructure, processing, LNG, refining and end-market demand to understand where value is created across the hydrocarbon system. We assess assets by resilience across price, geopolitical and transition scenarios rather than using one central forecast. Supply security, market access and optionality are incorporated alongside conventional financial returns because disruption can materially change infrastructure value. We then examine how portfolio duration, capital intensity and decarbonization requirements affect strategic choices between development, optimization, integration, partnership and divestment.
The data and estimates presented are indicative and intended for illustrative purposes. Actual outcomes may vary based on each company’s specific context, market conditions, operating model, implementation choices, and the quality and consistency of execution, including actions undertaken by the client.
Keypillars
Explore the key pillars that define this capability and shape how we create focused, measurable business impact.
Hydrocarbon economics
Understands reserves, lifting costs, refining margins, capital cycles, and commodity exposure across upstream and downstream activities
Integrated operations
Examines exploration, production, processing, transport, refining, trading, and distribution across interconnected energy systems
Energy transition
Tracks demand shifts, carbon policy, technology, geopolitical exposure, and portfolio diversification affecting oil and gas companies
Can your oil and gas business navigate energy volatility while making capital decisions for a changing system?
Get in touch with our Oil and gas team to address market, portfolio, operational and transition challenges across the industry.
Get in touchStrategic Framework
Explore our Strategic Framework
Autonomous AI agents are changing how work is executed, enabling adaptive processes that respond intelligently to changing conditions instead of following predefined rules.
Discover our framework01. Map system
Assess upstream, midstream, downstream, trading, infrastructure, customers, assets, and hydrocarbon flows
06. Track markets
Monitor production, inventories, spare capacity, trade, refining, LNG, policy, and geopolitical signals
05. Define choices
Prioritize assets, basins, fuels, infrastructure, capital, partnerships, and transition investments
02. Trace fundamentals
Examine reserves, production, demand, OPEC policy, geopolitics, refining, LNG, costs, and energy transition
03. Assess position
Evaluate asset quality, cost curves, resource life, portfolio balance, infrastructure, and market exposure
04. Model scenarios
Test price, demand, supply, carbon, regulation, technology, geopolitical, and transition pathways
How we help
Support energy companies in managing portfolio value across volatile hydrocarbon markets and fundamentally different long-term demand scenarios
We help oil and gas companies evaluate resources, markets and portfolio positions; prioritize capital across existing assets and new developments; and assess strategic options in LNG, integrated value chains and related infrastructure. Support can include portfolio restructuring, M&A, operating performance, geographic strategy, resilience and decarbonization choices. We connect near-term market opportunities with longer-duration asset economics so decisions do not depend on either a permanent scarcity assumption or a single transition forecast.
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Upstream portfolio strategy
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Field development strategy
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Production optimization
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Upstream cost transformation
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Reservoir value optimization
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Drilling performance improvement
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Oilfield services strategy
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Midstream strategy
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LNG strategy
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Gas portfolio strategy
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Refining strategy
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Downstream marketing strategy
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Hydrocarbon trading strategy
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Oil and gas digitalization
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Asset integrity strategy
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Oil and gas supply resilience
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Oil and gas decarbonization
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Carbon capture strategy
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Energy transition portfolio
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Oil and gas scenario planning
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Decommissioning strategy
Explore our FAQs
Find answers to the most common questions about this service, including key features, processes, and practical considerations. Explore our FAQs for additional insights and guidance.
Energy transition, geopolitics, capital discipline and changing demand expectations are altering portfolio and investment choices.
Test cost, demand, policy and carbon exposure across multiple scenarios rather than relying on one commodity-price outlook.
Low-cost assets, capital flexibility, geographic diversification and infrastructure access influence performance across market cycles.
Balance cash generation, maintenance, decommissioning and reinvestment rather than maximizing near-term production alone.
Data, automation and predictive systems can improve reliability, recovery and planning where they address material operating constraints.
Assess regulatory, operating and market implications alongside the economics of reducing emissions across the asset base.
When capabilities and market position create a credible advantage and investment economics compete with alternative uses of capital.
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