Major oil and gas producers plan to become leaders in renewable energy according to GlobalData report

According to a new report from GlobalData, oil and gas companies hold little over 1% of the total installed renewable energy capacity globally, which is dominated by traditional power producers. Renewable power generation across the world is expected to grow at a compound annual growth rate (CAGR) of 6.9% between 2022 and 2030, while the share of fossil fuels in the global power mix is estimated to decline over the forecast period. As a result, oil and gas players have pledged considerable investments in the renewable energy market to improve their share in the coming years.

The report provides a comprehensive overview of the competitive positions held by major oil and gas companies in the renewable energy market. It benchmarks the efforts of companies such as BP, TotalEnergies, Shell, and Equinor in the solar, wind, and biopower value chains. The report also identifies the trends influencing the renewable energy theme and the technologies that have evolved to exploit the harvested renewable energy.

According to Ravindra Puranik, Oil and Gas Analyst at GlobalData, "Leading oil and gas companies are expanding their exposure to renewable energy through increased investments, as international bodies, such as the United Nations, have highlighted the need to mitigate carbon emissions. Going forward, the oil and gas industry will increase its adoption of zero-carbon sources, with alternatives such as solar and wind power becoming increasingly popular."

The report highlights that solar and wind energy are the primary markets in the shift to renewable energy, as these technologies have promising growth potential. Additionally, oil and gas companies are also increasing their exposure to the emerging biopower segment.

Puranik adds, "Oil and gas leaders are increasingly positioning themselves as the providers of renewable power and renewable fuels. Solar and wind power projects have comparatively higher growth potential and are also witnessing falling project costs. This makes them ideal investments for oil and gas companies in their energy transition."

Overall, GlobalData's report underscores the importance of the renewable energy segment for oil and gas companies. As the global demand for clean energy continues to increase, oil and gas companies will be well-positioned to meet this demand by investing in renewable energy sources such as solar and wind power.