Grow with—not against—renewables
As the world puts net-zero plans into action, the renewables market is expected to grow exponentially. In the United States, solar energy will have expanded by 84 percent throughout the rest of 2023 and 2024. Growth is expected globally, with China, India and the European Union making their own investments in renewable energy. Similarly, 68 percent of executives across industries in the United States plan to increase their use of renewables, according to a survey by Publicis Sapient, Microsoft and Ipsos.
Where does that leave oil and gas companies? In 2024, oil and gas will continue to play a crucial role in powering the world, especially as reliable, utility-scale infrastructure is not yet in place to support the electrification revolution.
Oil and gas companies should look to the future as an opportunity to grow revenue while supporting consumers. Traders can diversify their portfolios to invest in renewable projects and unlock new revenue streams, such as biofuels. Biofuels will help energy consumers meet lower carbon goals with minimal, if any, infrastructure changes. At the same time, energy companies that invest in renewables can access government incentives.
New partnerships and collaborative projects will also empower energy organizations to help shape the transition to renewables. Renewables-focused startups can benefit from oil and gas companies’ deep industry and operational expertise, and these companies can gain a competitive advantage by becoming trusted partners to the next generation of energy leaders and leveraging their expertise in the development of carbon capture and storage technologies.
As renewables continue to claim a share of the market in 2024 and beyond, oil and gas companies have an opportunity to grow in new directions and diversify their revenue streams to build a sustainable, future-proof business model.