Published On: November 29th, 2021Categories: Trade Ideas
Questions arise about the role Oil & Gas companies could play in the energy transition. In Europe, where the drive for decarbonisation is more advanced than in the US, companies are under increasing pressures to change their business models to deal with the big trends represented by climate challenge and mobility. The transportation sector accounts for circa 50% of global oil demand and the convergence towards electric vehicle is a threat for big oil producers. Evolving consumer behaviors are pushing companies to shift away from oil towards lower-carbon fuels and gas and renewable energies. The sector offers an ESG premium and corporate hybrids are a good way to find value.