Global oil giants are still betting big on renewables despite recent slowdowns and political shifts.
Despite the ‘Trump effect’ and certain announcements, overall companies like BP, Shell and TotalEnergies continuing to expand their clean energy portfolios.
A new report from GlobalData highlights that while global energy production has surged by 30% in the last decade, renewable power has nearly doubled.
With renewables expected to make up over 40% of the energy mix by 2030, oil majors are positioning themselves to stay relevant in a rapidly evolving market.
TotalEnergies is set to become the world’s fourth-largest wind power producer if its pipeline of projects moves forward.
BP and Shell are also ramping up their renewable capacity, particularly in offshore wind, marking a significant shift for an industry that has traditionally relied on fossil fuels.
There have been recent setbacks. BP pulled its permit for the Beacon Wind project off New York, while Equinor scaled back its renewable targets, citing rising costs.
These moves have been linked to the changing political landscape, with Donald Trump’s election victory raising expectations of a friendlier approach to fossil fuels in the US.
But despite these pauses, European oil majors are still far ahead of US rivals ExxonMobil and Chevron, which remain largely absent from the renewable sector.
Both companies have shown little interest in shifting their business models, even as global demand for electricity rises due to electrification, data centers and EV growth.
Ravindra Puranik, Oil and Gas Analyst at GlobalData, commented: “The oil and gas industry, including producers, service providers and contractors—are relatively new entrants in renewable energy. Despite this, they are making notable movements in the competitive landscape for renewable energy, particularly in offshore wind.
“TotalEnergies is anticipated to be the fourth largest producer of wind energy globally towards the end of this decade, if all its proposed projects go online. Even BP, Shell, and several other European players are building considerable renewable power capacity.
“It’s ExxonMobil and Chevron, that are clear laggards in the renewable energy segment. These two companies have negligible capacity footprint in this theme and have no plans to alter this scenario in the near future.”
As clean energy continues to gain ground, oil majors that invest now are likely to be better positioned for long-term success.
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