'Supermajors' Converge On Clean Energy Sector

(Global) Clean Energy Giants Drive Collaboration

Traditional oil and gas companies are expected to increasingly converge with "clean energy supermajors," as a wave of large-scale projects drive breakbulk demand over the next decade, according to research consultancy Westwood Insights.

The firm’s latest analysis suggests that convergence of the two groups means collaboration will become increasingly important as oil and gas majors reposition their protfolios.

“As technologies, markets and companies evolve, the boundaries are becoming more blurred, and collaboration will be an increasingly important part of the modus operandi.,” Kathryn Symes, manager consulting at Westwood.

New Synergies

The term "clean energy supermajor" has been applied to companies across the energy sector with major renewable investments, including Iberdrola, Enel, NextEra Energy and Ørsted.

"The Energy Transition strategies of European oil and gas majors, who are also targeting investment in renewable power generation, could be seen as direct competition to the clean energy supermajors,” Symes states, noting that recent examples of collaboration may highlight synergies for the future.

Recent partnerships, such as BP partnering with Ørsted to leverage its offshore wind portfolio to produce hydrogen for the Lingen Refinery, suggest a more complex supply chain in future and one that will require new breakbulk services.

“The renewables supermajors are all doubling down on renewables in the coming decade – often balancing this with a network and customer business. As the market evolves, they are investigating ways of differentiating and extracting further value – primarily through batteries and green hydrogen,” Symes said.

Knowledge Transfer

Despite numerous areas of overlap, Westwood points out that key differences will remain as oil and gas companies continue to be underpinned by sizable fossil fuel businesses. Noetheless, skill and knowledge transfer from oil to renewables is likely to be significant in the more capital-intensive offshore wind sector, as exemplified by the transition of DONG to Ørsted.

“There will also be some geographies, with a historic link to hydrocarbon exploration, where the oil and gas majors can leverage local relationships for competitive advantage in renewables,” Symes said.

Headquartered in London, Westwood Global Energy provides market research and consulting services to the energy industry worldwide.
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