According to a report by Moody's Investors Service, major integrated oil and gas companies are adapting their business strategies in response to climate-change imperatives and emerging changes in energy supply and demand. The service looked at the steps ExxonMobil, Chevron, Royal Dutch Shell, Total and BP plc are taking to meet the challenges presented by energy transition and how their businesses will evolve in the coming years.
"The world's major integrated oil and gas companies are responding to climate-change imperatives, in particular the Paris Agreement, by developing new products and technologies to optimize energy usage and reduce their carbon footprint," said Steve Wood, a Moody's Managing Director in a statement.
Moody's notes in its report that Royal Dutch Shell, for example, is aiming to roughly halve its net carbon footprint by 2050, through investments in natural gas and its New Energies business. Additional findings from the report:
- Between 2016 and 2018, BP achieved a 2.6 million tonne reduction in its greenhouse gas emissions, and is targeting a 3.5 million tonne reduction by 2025.
- French company Total aims to cut its carbon intensity by 15% by 2030, and by a further 25%-35% in the subsequent 10 years.
- Over the past two decades, ExxonMobil, has invested more than $10 billion to develop and deploy lower emissions energy solutions.
- Chevron has joined the Oil and Gas Climate Initiative with a pledge for $100 million in investments on top of the $100 million Chevron Future Energy Fund it launched in 2018.