New Delhi [India], Goldma Sachs report 'Study on Top Oil and Gas Projects 2024' states that the oil industry worldwide has significantly reduced its resource life since 2014, primarily due to short- The cycle defines the resource life due to a strategic shift towards developing proven oil reserves. For example, if a country has 10 lakh barrels of proven oil reserves and is producing 2.5 lakh barrels per year, the resource life is ₹10,000,00 / 250,000 = 4 years. The report says these smaller, more flexible projects have allowed companies to adapt quickly to market fluctuations, but have also degraded the long-term stability of resource availability. The report also notes that despite these changes, investment in traditional energy sectors (oil, natural gas) is expected to continue to grow. An annual growth of 4 percent is expected till 2028. This indicates a cautious optimism within the sustainable investment industry, as it balances the need for immediate returns with the development of future resources.One of the notable trends highlighted in the report points to a bullish trend in oil. Cost curve from 2017. The oil cost curve represents the cost of producing oil at different levels of production. When the curve is steep, it means that the cost of extracting an additional barrel of oil increases rapidly. According to the report, the financial landscape has become even more complex due to ESG (environmental, social and governance) considerations, which have led to increased oil costs.Capital for long cycle oil development As a result, the incentive price for these projects has increased to US$80 per barrel assuming a 15 percent hurdle rate. This higher range reflects increased financial risk and the need for higher returns to justify a long-term investment. The oil industry's current development pipeline consists of 73 mega projects, down 32 percent from levels seen in 2014. This decline highlights a broader trend. Consolidation and cautious investment in the OI industry, as companies prefer projects with quick returns and low financial risk.The declining growth numbers also largely reflect the industry's response to oil price fluctuations and increasing regulatory pressures for 2024 and 2025, with the report highlighting a more moderate pace of investor decision-making. This cautious approach is likely driven by the need to deal with the uncertain market environment, characterized by volatile oil prices, stringent ESG requirements, geopolitical tensions and evolving regulatory scenarios. While slowing the pace of new investment, oil companies aim to better manage risk and align their strategies with long-term sustainability goals. The oil industry's shift toward short-cycle development and the rising cost of capital for long-cycle projects have led to significant changes in its investments. landscape.While traditional energy investments are poised to grow, our focus will remain on balancing immediate returns with sustainable, long-term resource management.