Oil and Gas companies move to the clean energy sector

With the rapid rise in environmental awareness and clean energy sources, are moving from oil and gas developmental work into renewable and clean energy projects. Rystad Energy, an independent research company that provides analytics and consultancy services to the global energy industry, released their findings on October 29^th stating that oil and gas service company revenues from non-exploration and production services have been increasing over the last five years, accounting for 27 percent of the revenues in 2018, rising from 22 percent in 2014.

 Baker Hughes, a market leader in the oil and gas industry, rebranded itself as ‘an energy company, with a diverse portfolio that spans the entire energy value chain’, due to reduced ownership stakes in their company. The company commented that the new name and brand reflect their current and improved business operations and diversifies their portfolio.

Similarly, Saipem, another market player in the oil and gas industry has seen their oil based backlogs decrease from 50 percent in 2016 to about 33 percent in 2019 as reported by Rystad. The company intends to get into clean energy projects to make up 60 percent of the company portfolio in the future. They announced on 29^th October that they would be partnering with Wello Oy, a Finnish company to deploy WEC (wave energy conservation) Penguin technology for the production of energy from marine waves. The project represents Saipem’s opportunity to work projects in the marine energy field proving their commitment to coming up with sustainable energy solutions for their clients.

The shifts taking place in the industry are an indication that the clean and renewable energy transition is gaining momentum as more and more giants in the oil and gas sector are moving towards clean energy.