Uche Cecil Izuora
Experts have suggested a solution pathway to reduce grid losses as oil
and gas operators that have over the decades of experience built and maintained large-scale infrastructure under complex conditions could benefit power generation operators.
That expertise is increasingly relevant as the grid evolves as integrating new generation, storage, and transmission requires coordination at scale, something the sector has long demonstrated.
In some cases, this is leading to new forms of collaboration and in co-located generation, integrated energy systems, and partnerships between power developers and energy companies are emerging as ways to improve efficiency and reduce development timelines.
These approaches according to opinion published by Oil And Gas 360, can help address several constraints at once, improving fuel security, reducing dependence on long-distance transmission, and providing more predictable output.
None of this suggests a reversal of the broader energy transition. Renewable capacity continues to expand, and policy goals remain focused on reducing emissions.
The challenge is that the transition is occurring within a system that still requires reliability at all times.
According to the report storage is growing, but duration remains limited and new technologies are advancing, but deployment at scale will take time. In the interim, the system depends on resources that can respond immediately and consistently.
It says that this is where oil and gas retain a role.
From a market perspective, this is reflected in how assets are valued.
Dispatchable capacity, fuel security, and infrastructure resilience are becoming more important investment considerations. Projects that can provide certainty in output are gaining relevance, particularly in regions with tightening supply conditions.
The shift is less about reversing direction and more about recognizing what the system requires in the present.
The grid is being rebuilt while it continues to operate. Balancing long-term transition goals with near-term reliability needs is becoming one of the defining challenges for policymakers, operators, and investors.
In that environment, the role of oil and gas is not disappearing and it is evolving.
For much of the past decade, oil and gas have been viewed primarily through the lens of emissions and transition. That framing is now being supplemented by a more immediate concern, the need for dependable, dispatchable energy in a system that is becoming less predictable.
Natural gas remains the most flexible large-scale generation resource available. Gas-fired plants can ramp quickly, respond to demand spikes, and provide consistent output when intermittent generation falls short. As renewable penetration increases, the value of that flexibility rises.
But the contribution of oil and gas operators extends beyond generation.
These companies manage the upstream and midstream systems that ensure fuel availability. Pipelines, storage, and processing infrastructure play a critical role in delivering energy when and where it is needed. In regions facing tight supply conditions, access to reliable fuel can be as important as generation capacity itself.
There is also an operational advantage.