Industry leaders have set net zero emission goals for 2050.
The energy transition has gained global prominence due to increased awareness of the impact of fossil fuel emissions on climate change. Following a global consensus to mitigate carbon emissions, many governments are emphasizing the need to pursue cleaner fuels as alternative energy sources.
Oil and gas companies are actively pursuing a variety of approaches to energy transition, from renewable energy to biofuels. Industry leaders such as BP, TotalEnergies, Shell, ExxonMobil, and Chevron have set net-zero emissions goals for 2050. Industry players are pursuing various avenues to reduce their carbon footprint. These include carbon capture and storage (CCS), hydrogen production, renewable energy production, electric vehicle charging, energy storage and biofuels. Of these, renewables, particularly solar and wind, are the main avenues in which major oil companies are investing.
TotalEnergies and BP are among the leading oil and gas companies investing in solar and wind power generation, with the former planning to have 35 GW of renewable capacity by 2025, rising to 100 GW by 2030, while BP is targeting 20 GW by 2025 and 50 GW by 2030. In terms of offshore wind generation, Norwegian oil and gas producer Equinor is expected to lead the way with plans to build 9.6 GW of offshore wind power by 2030. Including Eni and Respol, these five oil and gas majors are targeting nearly 250 GW of renewable capacity by 2030, up from 10.7 GW in 2022.