The role of incumbents in energy transitions : investigating the perceptions and strategies of the oil and gas industry

Abstract

The study focuses on sustainability transitions in the oil and gas industry, particularly its strategies and perceptions towards mitigating climate change. The paper offers a quantitative analysis of survey data collected from 116 questionnaire responses involving representatives of oil and gas companies, academia and young professionals, supplemented by a qualitative analysis of selected companies' reports and outlooks. The empirical results show that the oil and gas industry is attentive towards climate change and has the capacity to transit towards sustainability. There are significant differences in how the industry perceives climate change mitigation policies and treats public debate on climate change, which can be explained by geography and the related socio-political context. We point to the importance of stability of macroeconomic factors, such as oil prices, for oil and gas companies to diversify and transit, as well as underline the need to gain a deeper understanding of the effect of external pressures. We argue for clearer and more inclusive regulation, coordination and dissemination for climate policies, and wider engagement of oil and gas companies in sustainable energy transition. This paper contributes with a meso-level assessment of sustainability transitions, and suggests a more diverse picture of incumbents by highlighting the need to revise their role in sustainability transition processes. We offer additional perspectives on transition pathways for policymakers. Keywords: Oil, natural gas, climate change, sustainable energy transition, industry perspective