Energy transition has gained global prominence due to increased awareness about the impact of fossil fuel emissions on climate change. Following a global consensus to mitigate carbon emissions, many governments are emphasising the need to pursue cleaner fuels as alternative energy sources.
Oil and gas companies are actively pursuing diverse energy transition approaches, from renewable power to biofuels. Industry leaders, such as BP, TotalEnergies, Shell, ExxonMobil, and Chevron have set themselves net zero emission targets for 2050. Industry players are taking a variety of routes to reduce their carbon footprint. These include carbon capture and storage (CCS), hydrogen production, renewable power generation, electric vehicle (EV) charging, energy storage, and biofuels. Among these, renewable power, especially solar and wind, are the prominent avenues where oil majors are investing.
TotalEnergies and BP are among the leading oil and gas companies investing in solar and wind power generation, the former planning to have 35GW of renewable capacity by 2025, rising to 100GW by 2030, while BP is targeting 20GW by 2025 and 50GW by 2030. In offshore wind energy production specifically, Norwegian oil and gas producer Equinor is expected to lead with plans to build 9.6GW of offshore wind power by 2030. Including Eni and Respol, these five oil and gas majors are targeting almost 250GW of renewable capacity by 2030, versus 10.7GW in 2022.
Further details of oil and gas companies’ energy transition strategies can be found in GlobalData’s new report, ‘Energy Transition in Oil & Gas’.