The oil and gas industry: finding the right stance in the energy transition sweepstakes

Purpose: The long-term energy transition from fossil fuels to renewable energy challenges the future of oil and gas firms. The purpose of this paper is to explore how the world’s largest oil and gas firms’ strategies are responding to the transition. Design/methodology/approach: The authors used content analysis of annual reports to examine the renewable strategies of the world’s largest publicly traded oil and gas companies. Data were analyzed using two complementary statistical methodologies to build a taxonomy of the patterns in strategic behaviors involving renewable energy. Findings: Five transition archetypes are identified – three reflect an active pursuit of renewable energy, whereas the other two are more defensive in posture. The authors also find that the firm’s country context has an important bearing on renewable strategy. Both normative social pressures and regulatory pressures play key roles in influencing a firm’s commitment to a renewables’ strategy. Research limitations/implications: Using an innovative research method, we develop a new taxonomy to classify how the world’s largest oil and gas firms are shaping the transition from fossil fuels to renewable energy. Originality/value: Using an innovative research method, the authors developed a new taxonomy to classify how the world’s largest oil and gas firms are shaping the transition from fossil fuels to renewable energy.