Investing in the Transition is Investing in Oil and Gas

How the Supermajors are Leading the Green Energy Transition

The world’s largest and most influential oil and gas companies have taken the helm to steer the green movement forward. Although each one of these companies has made a significant impact on the green movement individually, together, they represent an unbelievable investment force.

Major oil companies are some of the most influential money movers in the world. Because of their potential value and financial influence, major gas and oil companies have the power to make a significant impact. It may surprise you to learn that the majors and super majors are using their profits to help fund research, invest in clean energy infrastructure, and lobby to help reduce environmental footprints.

Although there are numerous ways the super majors are funding eco-friendly energy ventures, one of the most staggering Investments in recent years is the combined investment in offshore wind energy. Now that offshore wind energy is beyond its infancy stage, supermajors are heavily investing in its expansion. In many ways, the potential
for offshore wind energy is vastly untapped as of yet. However, the supermajors are making incredible steps to change that for the future.

That’s a Trillion, With a T

One of the most significant investments the supermajors make toward clean energy is offshore windmills. Over the next few years, the most influential oil and gas companies are estimated to invest upwards of $1 trillion into the renewable energy resource. That number is correct; $1 trillion. This staggering amount of money has the potential to be a game changer for renewable energy projects.

The plan is to make this massive investment over the next ten years. Naturally, one of the attractions of offshore wind energy is its potential opportunity for creating cash margins on par with a per barrel of oil equivalent (BOE). However, as a renewable energy resource, the investment in offshore wind would significantly impact the energy spectrum.

Offshore windmills present the opportunity for renewable energy that could potentially deliver up to 25% higher margins than oil. Additionally, the operating costs for offshore windmills are significantly lower than those of deepwater drilling platforms. As big oil companies continue to invest in offshore wind energy projects, the transition to renewable energy is also pushed forward.

Gas and Oil Companies Building a Cleaner World

Offshore windmills are not the only energy projects oil and gas companies are investing in. On the contrary, big oil plays a heavy role in bankrolling and supporting countless clean energy projects and endeavors. In spite of the criticism that oil and gas companies often receive, they’re responsible for a significant portion of the funding for multifaceted energy projects. British Petroleum (BP) and Shell have taken drastic and consistent steps to transition away from solely fossil fuels. The European companies are making headway toward net-zero goals by reducing their carbon outputs, investing in CO2-capturing equipment, and prioritizing clean energy investments.

Furthermore, BP representatives say the major energy company made a $1.6 billion investment in low-carbon energy in 2022. BP’s efforts alone constitute a significant step in the shift to clean power. However, other companies have been instrumental in investing in the transition on several energy frontiers.

Resilient Hydrogen

One such exciting energy investment on the horizon is further research and development of hydrogen fuel. Green Hydrogen has much fewer emissions than traditional energy sources like coal and fossil fuels. Green hydrogen can be developed through renewable resources, like solar and wind power, to separate water molecules into fuel. This process is known as electrolysis and presents exciting new possibilities for low-emission energy production.