Private equity in upstream: views from the inside

External pressure is rising on public companies to decarbonise. This is bringing more assets to the market while thinning the pool of traditional buyers. Even where decarbonisation isn’t driving companies towards divestment, most firms are being pressed by investors to focus on cash generation and returns, rather than seeking reserves or production growth. Private equity (PE) has form for spotting a shortage of buyers and filling the gap. There’s a lot of speculation that PE, unencumbered by public investors pushing for progress on ESG metrics, will see huge opportunities in oil and gas and surge into the sector once again. But what is the reality of that speculation? We recently spoke to several people involved in private equity to get their view on whether ESG pressure on public companies will drive more PE buyers into the industry.