Browsing by Author "Kirchmayer, Max"
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- Plateauing energy demand and the rise of renewables : energy transition and corporate strategy of oil & gas companiesPublication . Kirchmayer, Max; Rajsingh, PeterInternational oil companies (IOCs) face an uncertain future for their incumbent business, with plateauing energy demand and an increasing share of renewables. Research shows that the total fossil fuel demand could decrease by 64 percent in 2050. This study aims to assess the reaction of IOCs to the looming crisis and to determine possible future actions. It asks: What are the major changes in the business environment caused by the energy transition and how can IOCs adapt to this shift? The study is based on literature review of forces pertaining to energy transition and theories of strategy, industry expert interviews and a bag of word (BoW) method analysis of IOCs annual reports. The results indicate high levels of uncertainty about energy transition for IOCs. There is a heterogeneous reaction to this uncertainty between companies. IOCs have to implement an agile mentality, overcome their inertia, set a clear direction, and acquire suitable capabilities.