Oil and Gas "Super Majors" and the Transition to Net Zero

What is the strategy that the oil and gas "super majors" are implementing as they transition to net zero?

Author(s): Shivaram Rajgopal and Bruce Usher

Date: September 28, 2022

Case ID: 230302

Division: Finance Division

Topics: Business Economics and Public Policy

Climate, Sustainability and Energy Transformation

Corporate Finance

Social Enterprise

Strategy

In an effort to avoid catastrophic climate change, the oil and gas "super majors" announced their strategy for transitioning to net zero and reaching carbon neutrality by 2050. Strategies include selling high GHG emitting assets; improving the efficiency of core operations to reduce the amount of greenhouse gases produced; investing in alternative energy sources; carbon capture and storage; and carbon offsets/credits. In this case, students examine the various plans from each "super major" and explore which tactics work, specifically looking at how Orsted successfully transitioned from fossil fuels to clean energy.

Shivaram Rajgopal

Roy Bernard Kester and T.W. Byrnes Professor of Accounting and Auditing; Chair of the Accounting Division
APAR Academic Advisory Board

Bruce Usher

Professor of Professional Practice; Co-Director of the Tamer Institute for Social Enterprise and Climate Change; Elizabeth B. Strickler '86 and Mark T. Gallogly '86 Faculty Director