Oil and natural gas investments in decarbonization so far have largely focused on curbing individual Scope 1 and 2 emissions, according to a new analysis by Deloitte.

Operators “are increasingly exploring clean energy avenues,” said authors Amy Chronis, Kate Hardin and Anshu Mittal in Deloitte’s 2024 Oil & Gas Industry Outlook. “However, their direct spending on low-carbon fuels and technologies, excluding investments aimed at boosting productivity and reducing emissions from operated assets, constitutes only 4%” of upstream capital expenditures.

Part of the issue is that renewable energy projects, by and large, do not generate as attractive returns as oil and gas projects.

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