The energy supply chain is turning its attention to oil and gas projects as the transition to net zero emissions encounters delays.

That’s one of the key findings of a new report by the global trade association Energy Industries Council (EIC), which notes that despite the increasing demand for renewable energy and low carbon technologies, consistent and profitable work in these areas appears to be lacking.

As a result, businesses are increasingly focusing on oil and gas ventures, which are currently experiencing a “period of substantial growth and prosperity”.

Data from the EIC’s Financial Investment Decision (FID) analysis underscores the disparity between the two sectors.

Oil and gas projects are gaining greater value and receiving more full funding compared to renewable energy and transition technologies like wind and hydrogen.

Within the oil and gas segments, FID rates for projects scheduled between this year and 2028 average around 20%.

In contrast, renewable energy projects are facing lower FID rates, according to the report – offshore wind stands at 8%, hydrogen at 3%, carbon capture at 2% and floating offshore wind at 1%.

Stuart Broadley, Chief Executive Officer of the EIC, expressed concerns over the missed opportunity for the supply chain to contribute to net zero solutions.

Mr Broadley said: “This is such a lost opportunity. The supply chain wants to be part of and to drive net zero solutions, but opportunities just aren’t there, in anything like enough volume or profitability.

“It’s high time for a reality check. We ask governments and energy policymakers to act now, to bring stakeholders together to address this energy policy crisis, to reignite funded demand for clean energy products and services, and to provide the right policy environment that encourages investment, innovation and the seeding and rooting of future, world-class, green technology exporting businesses.”