The giant oil and gas majors such as Chevron, BP, Shell, etc. are starting to tilt towards renewable energy and other green businesses as the movement against fossil fuels gains pace due to increasing concerns about climate change and pollution of air. They are making large investments though tiny by their balance sheet sizes into buying companies and technologies in the green space.

Now the COVID crisis is going to further accelerate this change as the huge volatility in the oil and gas industry is bringing the issues of fossil fuel to the top management of this company. “Never let a good crisis go to waste,” they say and these companies are using this crisis to further change their strategy for the post COVID world. The green companies have not been affected much by the COVID crisis as renewable energy generators are getting preference over coal and fossil fuel generators. The demand for green energy has not been affected much while the demand for oil and gas has plummeted. BP has decided to cut 10,000 jobs or 15% of its workforce to deal with the environment of decreasing revenues and profits. Chevron too has decided to heavily cut its workforce. Shell has been making billions of dollars in investments in batteries, charging infrastructure, solar and wind energy generation. Fossil fuels such as oil, gas, and coal are inevitably going to see their businesses disappear over the next 10-15 years as demand decreases and investments become scarce.

Also, read Are Indian Oil Companies Putting Their Heads in the Sand to Ignore the EV Revolution

BP has decided to radically change its company and make 11 new verticals as it decides to pivot away from oil and gas towards green energy businesses. The low carbon future and energy transition are going to come faster as the world realizes that business, as usual, is not going to work anymore. The demand decrease in oil and gas is going to accelerate as people commute less and try to become more self-reliant.