For investors, risks and returns are two sides of the same coin. An asset with a stable, predictable cash flow requires a lower return than a riskier asset. For companies such as Equinor, BP and TotalEnergies holding renewables assets alongside oil and gas, this divergence is already evident with renewables assets being valued at lower discount rates. But there are also big differences in risk profile between different hydrocarbon assets, not all oil and gas projects are the same. What if stakeholders begin to apply differentiated risk expectations within the oil and gas industry? Enter risk-adjusted discount rates where a premium is applied to reflect additional asset risk. When it comes to the valuation of risky assets for transactions, there are obvious benefits. Advantaged assets should command a premium valuation and risk-adjusted discount rates can capture this.