Lower carbon oil and gas may be increasingly valued by investors, earning higher multiples and lower costs of capital. This is the conclusion from our recent investor survey, linked here.
c80% now find it harder to invest in oil and gas, because of the need to decarbonise energy. However, 90% see lower carbon barrels as part of the solution. Hence 80% stated that lower capital costs could be warranted for these lower carbon producers.
Higher carbon barrels are currently being punished with c6% higher costs of capital, on average, compared with more typical projects. However, lower carbon barrels are not yet being rewarded, ascribed just 2% lower costs of capital, according to the survey data.
We will be happy to send a free copy of the data-file to all those that complete the survey, otherwise, it can be purchased below.