Large oil and gas (O&G) companies are tightening emission targets and speeding up transformation plans, with European majors leading the way but US peers are catching up, Fitch Ratings said on Thursday.
The global rating agency said O&G companies that recognize the transition early and adapt their business models accordingly will face fewer long-term challenges, including investor pressure.
Shell, Eni and Repsol are among those that have pledged to reach net-zero emissions by 2050.
Targets announced by other European and US majors vary, but all European companies plan at least a large reduction in emissions, while US peers focus on reducing emissions from upstream operations.
“Roadmaps to achieve carbon neutrality differ. Total, Eni, BP and Repsol expect renewable energy generation to be an important part of their energy mix. Shell is moving towards marketing, natural gas and chemicals, with less ambitious growth targets for renewable energy generation,” Fitch said.
It stressed that all European companies plan to expand natural gas and LNG production as a bridge energy source, transform existing refineries into biofuel sites and boost green hydrogen production.
By Sibel Morrow