Strategic Priorities for Green Diversification of Oil and Gas Companies

Alexey Cherepovitsyn (), Aleksei Kazanin and Evgeniya Rutenko
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Alexey Cherepovitsyn: Department of Economics, Organization and Management, Saint-Petersburg Mining University, 21St Line V.O. 2, 199106 St. Petersburg, Russia
Aleksei Kazanin: JSC Marine Arctic Geological Expedition (JSC MAGE), Ul. S. Perovskoy 26, 183038 Murmansk, Russia
Evgeniya Rutenko: Department of Economics, Organization and Management, Saint-Petersburg Mining University, 21St Line V.O. 2, 199106 St. Petersburg, Russia

Energies, 2023, vol. 16, issue 13, 1-17

Abstract: The inconsistency of arguments regarding the value of diversification strategies means that there is a lack of a unified methodological approach and a method for evaluating the impact on efficiency and competitive ability of companies. Research shows that diversification was crucially important for oil and gas companies during the economic shocks of 1998, 2009, and 2015. Nowadays, oil and gas companies apply the strategy of green diversification to solve climate change problems and adapt to energy transition trends. The goals of 14 global oil and gas companies with regard to carbon neutrality were analyzed in this study. This research expands the theoretical studies of diversification processes and outcomes in the oil and gas industry and contributes to the discussion of the feasibility of companies implementing renewable energy projects. The factors that prompt oil and gas companies to adopt green diversification were formulated, and their key strategic priorities were determined depending on the volume of proven resources. The research suggests that global shocks in the international energy market and a reduction in the significance of oil and gas resources in the overall power balance stimulate companies to diversify their asset portfolios, but such strategy does not protect against negative impacts. In addition, important issues were identified for further analysis.

Keywords: diversification; oil and gas companies; strategy; strategic planning; energy resources (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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