Major Oil EPC Players Shifting Towards Cleaner Energy

Leading oil and gas engineering, procurement and construction (EPC) companies are increasingly shifting their strategies towards cleaner energy segments.

That’s according to data and analytics company GlobalData, which outlined that major oil and gas EPCs have traditionally built relatively little exposure to renewables.

The company noted, however, that with a bleak investment outlook for the sector post-Covid-19 and major oil and gas companies making strategic shifts for the energy transition, these EPCs are looking to renewables and other clean energy sectors for future growth.

According to GlobalData, EPC companies are adopting diverse strategies to position themselves for the energy transition. The company highlights that Aker and TechnipFMC, for example, have restructured their businesses to create dedicated units for low-carbon projects.

Meanwhile, Petrofac is aiming to achieve net zero in Scope 1 and Scope 2 emissions by 2030, GlobalData highlighted.

“Covid-19 brought a major oil and gas demand shock, delayed projects and raised additional questions about the potential for future oil demand growth,” Will Scargill, a managing oil and gas analyst at GlobalData, said in a company statement.

“Oil and gas investment is likely to flat-line at best over the coming years and companies will need to look to the growth markets of new energy sectors to support their businesses,” the GlobalData representative added in the statement.

Mr Scargill went on to note that the targeting of offshore wind and carbon capture is a common theme among companies from the oil and gas sector looking to adapt for the energy transition “due to the potential for knowledge synergies”.

“Oil and gas EPCs looking to target new segments will also hope to benefit from existing partnerships with clients making a similar transition. However, their growth plans will face a challenge from incumbent players in the renewables space,” Mr Scargill added.

Source: Rigzone