Analysis of transformational change strategies of international oil and gas companies in the context of decarbonization

Abstract

This paper analyzes the transformational change strategies of major international oil and gas companies in the context of decarbonization, which are key elements in ensuring the industry's resilience and competitiveness amid global climate change. The modern energy sector faces significant challenges due to the need to reduce carbon dioxide emissions and transition to cleaner energy sources. International oil and gas companies, which have historically relied on fossil fuels, must adapt their business models and production processes to comply with new environmental standards and social expectations.
A comparison of the transformational change strategies of three international oil and gas companies (Saudi Aramco, ExxonMobil and Shell) in the context of decarbonization has been conducted, highlighting the strengths and weaknesses of each strategy. It is suggested to consider the experience of leading global companies when developing decarbonization plans for Ukrainian oil and gas enterprises.
One key reason transformational changes are important is the need to comply with global decarbonization goals, as stipulated by the 2015 Paris Agreement. This implies that oil and gas companies must significantly reduce their greenhouse gas emissions, which requires fundamental changes in asset management and technological approaches to the extraction and processing of fossil resources. Companies that fail to adapt to these changes risk losing market positions, facing a decline in investment attractiveness, and encountering regulatory sanctions.
Another important aspect of transformational changes is the development of new business areas, such as renewable energy sources and low-carbon technologies. Decarbonization strategies include asset portfolio diversification, investments in "green" energy, and the development of innovative solutions for carbon capture and storage. International companies are already implementing ambitious programs to reduce their carbon footprint and increase investments in renewable energy, thereby enhancing resilience to long-term climate risks.
The social component of transformational changes is also important. Under the growing pressure from investors, government bodies, and the public, oil and gas companies are forced to demonstrate environmental responsibility and transparency. Implementing sustainable development strategies allows companies not only to maintain social approval for conducting business but also to increase trust in society. This, in turn, contributes to attracting new investments and developing partnerships with environmentally oriented players.