The role of incumbents in energy transitions: Investigating the perceptions and strategies of the oil and gas industry

Morgunova, Maria; Shaton, Katerina

doi:10.1016/j.erss.2022.102573

Cited by 29 publications

(12 citation statements)

References 30 publications

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“…In the works presented above, the structurization of selected options and directions of decarbonization is performed mainly by two criteria: the scope or stage of a technological chain, which leads to multiple mentions of different decarbonization options and makes it impossible to apply a universal terminological apparatus. The second line of the research is aimed at studying strategies for oil and gas companies' decarbonization and the process of their transition to being carbon neutral [21,[41][42][43][44][45]. Thus, Cherepovitsyn and Rutenko [41] analyze the strategy of major oil and gas companies on key decarbonization options and justify the need to change the system of strategic planning to hold key positions in energy markets.…”

Section: Introductionmentioning

confidence: 99%

Renewable Energy Sources in Decarbonization: The Case of Foreign and Russian Oil and Gas Companies

Romasheva

Ilinova

2023

Sustainability

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The necessity of implementing the Sustainable Development Goals and solve the problem of climate change, technological progress and the conscious climate policy of many countries has led to the transformation of the world economy and power industry towards low-carbon development, which should be based on renewable energy sources. Oil and gas companies are actively criticized by the international community for contributing significantly to total anthropogenic greenhouse gas emissions, with emissions from hydrocarbon fuel combustion being the largest. In order to meet the tightening environmental requirements and regulations, oil and gas companies implement various initiatives for decarbonization and reducing the carbon footprint, including operating with renewables, whose scale, essence and variety depend on the decarbonization model. This paper attempts to identify, first, how renewable sources of energy have been integrated into the oil and gas companies; second, what decarbonization models are possible; and third, what the major determining factors in the formation of their decarbonization model and the scale of renewable usage are. Based on an extensive literature review, survey, websites and corporate sustainability reports of Russian and foreign oil and gas companies, models of decarbonization and the role of renewables in decarbonization are defined and the classification and interpretation of determining factors are offered, justifying their impact on the decarbonization model and the scale of renewable usage. The authors present an assessment of factors and prove the correlation between the factors under consideration and the scale and diversity of renewable usage by oil and gas companies, confirming the adequacy of the offered approaches.

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Section: Introductionmentioning

confidence: 99%

Renewable Energy Sources in Decarbonization: The Case of Foreign and Russian Oil and Gas Companies

Romasheva

Ilinova

2023

Sustainability

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“…The crisis in the fossil fuel market and the shifts in energy transition challenge the long-term sustainability of oil and gas corporations; however, they also reveal opportunities for developing new types of activities. The key factors that prompt oil and gas companies to adopt green diversification include the following [61][62][63][64]:…”

Section: Resultsmentioning

confidence: 99%

Strategic Priorities for Green Diversification of Oil and Gas Companies

Cherepovitsyn

Rutenko

2023

Energies

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The inconsistency of arguments regarding the value of diversification strategies means that there is a lack of a unified methodological approach and a method for evaluating the impact on efficiency and competitive ability of companies. Research shows that diversification was crucially important for oil and gas companies during the economic shocks of 1998, 2009, and 2015. Nowadays, oil and gas companies apply the strategy of green diversification to solve climate change problems and adapt to energy transition trends. The goals of 14 global oil and gas companies with regard to carbon neutrality were analyzed in this study. This research expands the theoretical studies of diversification processes and outcomes in the oil and gas industry and contributes to the discussion of the feasibility of companies implementing renewable energy projects. The factors that prompt oil and gas companies to adopt green diversification were formulated, and their key strategic priorities were determined depending on the volume of proven resources. The research suggests that global shocks in the international energy market and a reduction in the significance of oil and gas resources in the overall power balance stimulate companies to diversify their asset portfolios, but such strategy does not protect against negative impacts. In addition, important issues were identified for further analysis.

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“…The pressure from states, markets, and nongovernmental organizations (NGOs) has forced oil and gas (O&G) companies to take action to move (at least seemingly) toward a net‐zero or carbon‐neutral future. However, fossil fuels still occupy the largest share of the global energy mix, therefore, O&G companies can make large profits from fossil fuels and still have vested interests in the incumbent fossil‐fuel system (Ferns & Amaeshi, 2021; Morgunova & Shaton, 2022; Rempel & Gupta, 2022). Oil and natural gas accounted for around 54.1% of the global primary energy supply and 55.3% of the CO 2 emissions from fuel combustion in 2019 (International Energy Agency, 2021a).…”

Section: Introductionmentioning

confidence: 99%

Globalization and decarbonization: Changing strategies of global oil and gas companies

Guo

Yang

Bradshaw

et al. 2023

WIREs Climate Change

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Oil and gas (O&G) companies, as key players in the contemporary global energy landscape, have evolved within the context of a dynamic interaction between states and markets. However, their role is being transformed radically by two successive “global shifts”: economic globalization—driving energy demand growth patterns—and climate change—driving energy system transformation and decarbonization, both of which require them to reconsider their business strategies. Using an interdisciplinary lens that draws on human geography, strategy and international business, and international political economy, we propose an integrated conceptual framework for two periods—the 1990s–early 2010s and the post‐Paris Agreement era—to explore the nature of strategic responses by O&G companies to these global economic and environmental shifts. We illustrate the linkage of O&G companies' two strategies of (re‐)globalization and decarbonization by the aspects of production, finance, and knowledge as internal structures. Energy security is one of the priorities in the macro external environment. It is becoming increasingly difficult for O&G companies to deal with current dilemmas: climate goals require a significant reduction in fossil fuel production and consumption, and pressures from governments, nongovernmental organizations, and investors threaten the long‐term survival of O&G companies, while fossil fuel demand will remain high in the short to medium term. At the same time, the post‐pandemic recovery and Russia's war in Ukraine are resulting in a re‐assessment of the benefits of unfettered globalization. Therefore, global O&G companies face dual challenges in the new era of (re‐)globalization and decarbonization and need to make changes to ensure their future viability.This article is categorized under: The Carbon Economy and Climate Mitigation > Decarbonizing Energy and/or Reducing Demand

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The role of incumbents in energy transitions: Investigating the perceptions and strategies of the oil and gas industry

Cited by 29 publications

References 30 publications

Renewable Energy Sources in Decarbonization: The Case of Foreign and Russian Oil and Gas Companies

Renewable Energy Sources in Decarbonization: The Case of Foreign and Russian Oil and Gas Companies

Strategic Priorities for Green Diversification of Oil and Gas Companies

Globalization and decarbonization: Changing strategies of global oil and gas companies

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