Why Decarbonization Could Make Strategic Sense For Oil Majors

Can oil companies profitably transform themselves into low carbon, green enterprises? That is a big question for investors. We have already noted that green investments because of their lower risk profile earn lower returns than those to which oil investors and managements have become accustomed. Also oil companies bring no particular edge in renewable investment with the possible exception of geothermal which could utilize the industry’s considerable drilling expertise. In order to make a long term positive financial oil industry managers…