IMG.gif
Strategy

Investors Not Convinced by Euro Majors' Strategies

Copyright © 2021 Energy Intelligence Group
ss339828023-Morgan Stanely building and logo

Investors appreciate European oil companies' efforts to transition to greener business models but are not quite convinced massive investment in renewable power alone is the best thing to do. Companies actually seem to agree and most are targeting diversification in businesses including renewable electricity but also biofuels, hydrogen, electric mobility and carbon capture, where they might have stronger competitive advantages, according to Martijn Rats, investment bank Morgan Stanley's chief commodities strategist. This could prove especially appealing if company boundaries were redrawn and some components partly spun off to attract different categories of investors. This would be in line with activist hedge fund Third Point's recent proposal to split Royal Dutch Shell into legacy petroleum and lower-carbon businesses, including electricity and natural gas.

European oil majors and utilities are starting to put some sizable cash into green hydrogen, but cost and demand remain murky.
Wed, Dec 8, 2021
Biofuels have had a complicated history, with a number of uncertainties still affecting future growth prospects.
Wed, Dec 8, 2021
Woodside is planning to invest $5 billion in hydrogen and carbon capture and storage by 2030 to accelerate its transition toward a low-carbon future.
Wed, Dec 8, 2021