The renewable energy arena is certainly one that is closely monitored by energy professionals from all sectors. Aside from the growing demand for renewable energy sources, there have been increasing reports that larger energy companies are also expanding into this area. In our latest blog, we look at some of the latest reports on oil and gas giants switching to renewable energy.
Total’s future lies in renewable energy and LNG
In October, the French oil and gas company, Total, released its latest Strategy and Forecast paper – and renewable energy was at the heart of it. The company revealed that it will continue to focus on reducing emissions while increasing energy production. Half of this growth will come from liquefied natural gas (LNG) and the other half from electricity, most of which will be generated from renewable sources.
To facilitate this growth, the company will increase its profitable investments in renewable energy to $ 3 billion annually. All these measures were outlined to help the company achieve its ambition of becoming net zero by 2050. According to reports, Total CEO Patrick Pouyanné told French newspaper Le Parisien that the company was aiming to be among the five producers best renewable energy energy in the world. .
BP is switching to renewable energy
Energy giant BP also reaffirmed its commitment to reducing its oil and gas production and continuing to switch to renewable energy. The company has unveiled a strategy for the next decade to achieve its zero-net ambition.
Part of these plans include:
- A tenfold increase in low carbon investments by 2030, aiming for an eightfold increase by 2025
- Reduce emissions from BP assets by 30 to 35% by 2030
- By reducing the carbon intensity of the products it sells by more than 15% by 2030
- It plans to partner with 10-15 cities and three key industries in the company’s decarbonisation efforts
- It increases the renewable generation capacity from 2.5 GW generated in 2019 to around 50 GW
According to a statement on its website: “In the coming years, BP will significantly expand our low carbon energy business and transform our mobility and convenience offerings. We will focus and reduce our oil, gas and refining portfolio. In addition, as we reduce emissions along our path to net zero, we are committed to continuing to deliver long-term value to our stakeholders. ”
Equine transitions beyond oil and gas
With Norway’s oil chief welcoming a new CEO this month, it looks like rapid changes are underway, and moving to renewable energy is just one of the plans. According to reports, new CEO Anders Opedal has been tasked with speeding up the organisation’s transition to becoming a larger energy company.
In particular, the company will focus on developing its renewable energy portfolio. This news is the latest in a series of tactics implemented by the company to go beyond oil and gas. In 2018, the brand was the first in the industry to announce plans to become a more general energy company, removing “oil” from its old name – Statoil – the same year.
In a statement, Jon Erik Reinhardsen, chairman of Equinor’s board of directors, said:
“Equinor is entering a period of significant change as the world must take more vigorous action to combat climate change. The board’s mandate is that Anders accelerate our development as a large energy company and increase value creation for our shareholders through the energy transformation.
Valero Energy benefits from a switch to renewable energy
Valero Energy is well known for managing one of the largest independent oil refineries in the world and is a big name in the oil and gas industry. With 15 oil refineries and 14 ethanol plants worldwide, it is certainly one of the big players in the industry.
But did you know that Valero Energy is also involved in the largest renewable diesel operation in North America? In a joint venture with Darling Ingredients, the company operates Diamond Green Diesel. This part of the business has been invaluable so far, growing 80% in 2019 alone.
ExxonMobil overtaken by solar and wind generator
Perhaps in the clearest indication that renewable energy is a true competitor in the energy and utilities sector, in October NextEra Energy ExxonMobil overtook stock market value. According to A&P Global Market Intelligence, the world’s largest solar and wind generator has gained two-thirds of its market capitalization over the past two years.
And the future looks just as promising. Financial Times reports revealed that the company announced a pilot program to use solar electricity to produce hydrogen, a potential fuel for diesel. Projects like this have increased investor interest in the business, with its focus on renewable energy making the company very attractive to potential stakeholders.
Paul Patterson, an analyst at Glenrock Associates, said: “People are excited about renewable energy and the transformation that is taking place in the energy sector and believe this is probably one of the companies in the best position in the United States to seize this opportunity. ”
Shell continues to invest in green energy
As the demand for renewable energy begins to rise many years ago, Shell has stepped in to respond better to this changing environment. The company has pledged to invest between $ 4 billion and $ 6 billion in green energy projects from 2016 through the end of this year. Although this is unlikely to be achieved, the Anglo-Dutch company has made a number of critical investments in renewable energy.
In 2018, for example, it purchased a 44% stake in the US solar energy company, Silicon Ranch. Shell would also have spent about $ 2 billion to start a low carbon power and electricity business. And it is highly likely that the company will invest further in renewable energy in the coming years.
What does this mean for job seekers?
For those looking for their next job in the energy sector, news of other oil and gas giants moving to renewable energy highlights several key points. Perhaps most importantly, it highlights that it is possible to transfer broader energy skills into the field of renewable energy. The fact that organizations from other branches of the energy industry are looking into the renewable sector shows that there is significant potential in this area. However, with a continuing shortage of skills in this area, these large oil and gas companies are likely to seek additional resources.
Many are very likely to come from other specialties with skills that can be used in renewable energy. If you are experienced in oil and gas, for example, and looking for a new career path, switching to renewable energy could be perfect for you.
With climate change and the sustainability of the key topics of global debate, the demand for renewable energy will only increase. And with this growing need for green resources, energy professionals will find opportunities for diverse and highly lucrative career changes.