Wood Mackenzie, the new owners of Make Consulting, said the growth in wind and solar "cannot be ignored" by oil and gas majors, and argued the technologies should be part of the majors’ plans beyond 2035.
"The entire global market for wind and solar is currently just 4% of that of oil and gas, but is set to grow at a rapid rate and much faster than oil demand.
"By 2035 annual revenues from wind and solar will be around one twelfth those of oil and gas in our base case; a 'carbon constrained' scenario would result in much greater penetration," the report found.
Wood Mackenzie said in its base-case forecast, renewable energy will be the fastest-growing energy source worldwide over the next 20 years, with an average annual growth rate for wind of 6%.
"By 2035 wind and solar will have captured respective 8% and 5% shares of global power supply [from 1% in 2017]. In contrast, total primary energy demand for oil grows at only 0.5% per year," the report stated.
The report also said offshore wind may be the most attractive option in the near term, because it "offers scale and scalability on a par with upstream mega projects".