Committed to the future of green energy between ensuring short-term supply security and TRA. Review the obstacles and market trends of the previous year, as well as the transition of major oil companies to renewable energy and their initial attempts to implement it.

Record breaking 2022 for large oil companies

The oil company with the largest combined profit of five people, Western, reached nearly $200 billion in 2022, despite challenges posed by changes in consumer demand, price fluctuations, and potential supply cuts due to geopolitical issues. These companies, including Total Energy, ExxonMobil, Yamagata Sleeve, BP, and Shell, face ensuring short-term supply while transitioning to clean energy for the long haul.

Total Energy's annual profits have doubled to $36.2 billion, while other companies' annual profits have also increased significantly. BP announced an adjusted profit of $27.7 billion, a significant increase from $12.8 billion last year. Shell reported its highest annual profit of nearly $40 billion in history. ExxonMobil reported a profit of $56 billion, setting a historic high in the Western oil industry, while Chevron recorded a record profit of $36.5 billion.

The five "oil giants" created a total of $196.3 billion in profits, which is higher than the GDP of many countries. This is mainly due to Russia's invasion of Ukraine, resulting in delivery interruptions and bottlenecks, leading to tight oil supply and prices approaching historical highs of over $100 per barrel.

Looking forward to the future of oil companies

It is expected that oil demand will peak around 2035, which will reappear. The significant transformation of the petroleum industry. This transformation will bring about integration, new participants, and new methods. It is expected that successful oil companies in the future will be able to adapt to these changes and leverage their advantages. In order to endure this new pattern and profit from it, the company will have to develop innovative strategies to maintain competitiveness and profitability.

It is expected that the global energy landscape will witness a decline in the share of coal and oil, which will force oil rich countries to diversify to resist changes in the energy market. Although the abundance of natural gas reserves in unconventional deposits and the reduction in delivery costs from production to consumption will lead to a trend of "heavy gas". Renewable energy will partially replace the demand for hydrocarbons, while other energy sources such as nuclear energy and hydropower are expected to reach stable points.

Clean energy enterprises

In the past decade and a half, major oil companies have invested over $6 billion in clean energy enterprises. Similarly, smaller companies have also participated in these investments, with Shell and Total investing in small renewable energy projects and companies.

Shell stated that it plans to allocate $1 billion to $2 billion annually for new energy sources such as biofuels, hydrogen refueling stations, electric vehicle charging stations, and onshore and offshore wind power. On the other hand, Total mainly focuses on solar power generation and enhancing energy storage through advanced battery technology.

Norwegian National Petroleum Company (formerly known as "Equinor") has shifted its focus to offshore wind farms, solar and onshore wind power generation, and is also a leading company in carbon capture and storage technology (CCS). BP and Chevron, although slower, have also announced their commitment to renewable energy.