Shell

Oil majors wrestle with reserves as industry health measure

As oil majors and investors grapple with the upheaval of the energy transition, some traditional metrics for producers’ long-term growth potential are up for debate. Climate change, the renewable energy boom and electrification are throwing demand scenarios for oil and gas wide open and casting a shadow over future returns in the sector. Where a company’s production-to-reserve ratio, or reserves life, was once a proxy for business sustainability, many now