STRATEGIC DIFFERENCES AMONG OIL MAJORS IN THE FACE OF ENERGY TRANSITION: OPTIONS, MOTIVATIONS, AND IMPLICATIONS

Abstract

This paper proposes a framework to analyse the strategic options of the oil majors in the face of the challenge from the energy transition, simultaneously considering two issues that are interrelated: the objective to reduce greenhouse gas emissions and the objective of adapting to changes that are occurring in the demand for energy. Using this framework, we wonder to what extent the changes taking place in the demand for energy have been a necessary, or even sufficient, condition for European companies to initiate diversification strategies. We also wonder if the diversification of the business towards other activities not linked to hydrocarbons has been a necessary condition, or a sufficient one, for these companies to have begun to take on the reduction of emissions as a strategic objective. Finally, the paper analyses the impact of these diversification strategies on the development of renewable energies.