Carbon capture, utilization and storage (CCUS) is a cornerstone of the continent's net-zero strategy and the target of significant investment, ISG Provider Lens report says
Europe's largest producers of oil and gas are striking a balance between meeting the continent's long-term net-zero goals and addressing more immediate concerns over energy independence and security brought on by the conflict in Ukraine, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens Oil and Gas Industry Services and Solutions report for Europe finds that the continent is striving to reduce its reliance on oil and gas imports while committing to an energy transition that includes carbon capture, utilization and storage (CCUS), among other top priorities. CCUS is an area of significant investment for many oil and gas players and governments, with multi-billion-dollar investment plans announced, the ISG report says.
"Energy transition is an emerging segment that is currently dominated by large global IT players," said Julien Escribe, partner, ISG, SEMEA. "Providers are creating energy transition solutions through the co-development route with hyperscalers, technology players and their existing clients."
In March 2023, the European Commission introduced the Net-Zero Industry Act to establish a framework for enhancing Europe's net-zero technology products manufacturing ecosystem, the ISG report says. The Act aims to enable Europe to manufacture at least 40 percent of its clean energy technology needs domestically by 2030. Among eight strategic net-zero technologies, the Act places a particular emphasis on CCUS for meeting climate goals, ISG says.
According to the ISG report, the EU plans a strategic vision for CCUS technologies, including a $3.3 billion investment for innovation and development in CCUS, along with an EU-wide carbon storage infrastructure. Another EU-wide target aims for an annual CO2 injection capacity of 50 million tons by 2030, ISG says.
In response to European policies, the continent's oil majors have aligned with the ambitious net-zero pursuit, the ISG report says. Although the companies share the same goal, they each have adopted distinct strategies, ISG says. For example, Shell defined the initial net-zero template that has guided the others, while BP has positioned itself as the fast mover, aggressively committing to low-carbon investments as well as reducing oil and gas exposure, the report says.
"As part of its pursuit of net-zero goals, the oil and gas industry depends on large-scale capital projects," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Service providers of capital projects management enable companies to deliver these projects on time and within budget."
The report also examines how major players in Europe's oil and gas industry are experimenting with generative AI.
The 2023 ISG Provider Lens Oil and Gas Industry Services and Solutions report for Europe evaluates the capabilities of 31 providers across five quadrants: Enterprise Asset Management, Next-Gen IT/OT Services, Capital Projects Management, Data Management and Cloud Computing and Energy Transition Services.
The report names Accenture, Capgemini, Deloitte, IBM, Infosys, TCS and Wipro as Leaders in all five quadrants, while Cognizant is named as a Leader in four quadrants. EY and LTIMindtree are named as Leaders in two quadrants each, while LTTS and PwC are named as Leaders in one quadrant each.
In addition, Cyient, Hitachi Vantara, LTIMindtree, LTTS and Tech Mahindra are named as Rising Stars companies with a "promising portfolio" and "high future potential" by ISG's definition in one quadrant each.
The 2023 ISG Provider Lens Oil and Gas Industry Services and Solutions report for Europe is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens Research
The ISG Provider Lens Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries-a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.
Will Thoretz, ISG
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Kate Hartley, Carrot Communications for ISG
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