From Oil to Renewables: Different Pre-Covid Attitudes between Major State-Owned and Private Oil Comp

The shift from oil and gas (O&G) to renewables is integral in achieving the Net Zero Emission situation. However, O&G companies across the global supply chain have varying attitudes towards renewables. Major national oil companies (NOCs) are more biofuel-focused, more domestic-looking, and have fewer renewable investments. NOCs see biofuel as the best mixed use of large hydrocarbon reserve and agricultural employment that their countries have together. Meanwhile, major private oil companies (POCs) happen to have a long-time historical presence in wind and solar business already. Coupled with the situation where POCs have high exploration cost (because NOCs are usually politically prioritized in accessing oil resource in host countries), POCs see diversifying to renewables as interesting, possible, and needed. These findings are also socioeconomically relevant, considering that O&G industry employs many people, raises much fiscal revenue, ignites local economic multiplier effect, and supports countries' trade balance along its global supply chain.