Globalization and decarbonization

Changing strategies of global oil and gas companies

Datos Bibliográficos

ID12929486
AutoresYue Guo (0000-0003-3452-8965, Chinese Academy of Sciences), Yu Yang (0000-0001-9283-0068, Chinese Academy of Sciences, autor de correspondencia), Michael Bradshaw (0000-0001-8842-3953, University of Warwick), Chang Wang (0009-0005-4771-6916, Fudan University), Maria Blondeel (0000-0002-3232-5817, University of Warwick)
Año2023
Volumen14
Número6
Fecha de publicación2023-06-19
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaWiley Interdisciplinary Reviews Climate Change (JOURNAL)
Identificadores de la revistaISSN: 1757-7780 • E-ISSN: 1757-7799
EditorialWiley (PUBLISHER • GB)
DOI10.1002/wcc.849
OpenAlexW4381187745
IdiomaEN
Citas recibidas11
Referencias citadas184

Oil and gas (O&G) companies, as key players in the contemporary global energy landscape, have evolved within the context of a dynamic interaction between states and markets. However, their role is being transformed radically by two successive “global shifts”: economic globalization—driving energy demand growth patterns—and climate change—driving energy system transformation and decarbonization, both of which require them to reconsider their business strategies. Using an interdisciplinary lens that draws on human geography, strategy and international business, and international political economy, we propose an integrated conceptual framework for two periods—the 1990s–early 2010s and the post‐Paris Agreement era—to explore the nature of strategic responses by O&G companies to these global economic and environmental shifts. We illustrate the linkage of O&G companies' two strategies of (re‐)globalization and decarbonization by the aspects of production, finance, and knowledge as internal structures. Energy security is one of the priorities in the macro external environment. It is becoming increasingly difficult for O&G companies to deal with current dilemmas: climate goals require a significant reduction in fossil fuel production and consumption, and pressures from governments, nongovernmental organizations, and investors threaten the long‐term survival of O&G companies, while fossil fuel demand will remain high in the short to medium term. At the same time, the post‐pandemic recovery and Russia's war in Ukraine are resulting in a re‐assessment of the benefits of unfettered globalization. Therefore, global O&G companies face dual challenges in the new era of (re‐)globalization and decarbonization and need to make changes to ensure their future viability. This article is categorized under: The Carbon Economy and Climate Mitigation > Decarbonizing Energy and/or Reducing Demand

Business · Context (archaeology · Economic system · Economics · Economy · Energy security · Fossil fuel · Geography · Global strategy · Globalization · Market economy · Natural resource economics · Political science · Politics · Renewable energy · Engineering · Global Energy and Sustainability Research · Global Energy Security and Policy · Law · Natural Resources and Economic Development