National oil corporations (NOCs) have made significant progress in enhancing their ability to withstand future oil price downturns due to substantial cash flows and profits.

However, many face challenges in sustainability and ESG indicators due to governance concerns, inadequate disclosures, and the absence of Scope 3 emission objectives.

Energy consultancy Wood Mackenzie has incorporated eight NOCs into its Corporate Resilience and Sustainability Indices, comparing them to multinational oil majors.

The increased cash flows from oil price surges have provided NOCs with financial flexibility, enabling them to better withstand potential price collapses.

However, the long-term sustainability of NOCs may face challenges due to a disproportionate focus on domestic operations and a lack of exposure to unconventional resources.