With global demand for electricity continually growing, major oil and gas remain essential to fulfilling our power generation needs as renewable solutions scale up. However, since the adoption of renewables, particularly solar, is speeding up, this places a question mark over exactly how long hydrocarbons have left as a fuel source in the global energy mix.
This is not a new reality, and it’s one that major oil and gas companies have been pondering for decades. Not only do they have to contend with the challenges of adapting to dramatically changing market conditions – spurred on by innovation breakthroughs and falling production prices for renewables – they are also feeling mounting pressure from governments, NGOs and ordinary citizens to create conditions for a more sustainable future for everyone.
Together, these push-and-pull factors are prompting a more rapid transition towards sustainable operations from major oil and gas companies across the world. This is manifesting in three main ways:
1: More ambitious ‘net zero carbon emissions’ targets emerging from O&G companies regarding their existing operations.
2: Greater direct financing of wholly renewable energy projects, either within the O&G company itself or in partnership with a renewables company/solution provider.
3: Replacement of board members with those more suited to combatting climate change and embracing renewables.