Will the US lead the energy transition? decarbonization policy of American oil companies

Abstract

The article assesses the chances of the US that recently recovered its former status of a major energy power to become the leader of the energy transition from fossil fuels to the renewable sources of energy. The authors study the key drivers of the oil and gas sector decarbonization within the framework of the fourth energy transition, such as government policy, greening of financial institutions, etc. The article analyzes decarbonization strategies and goals of the main players in the American and European oil and gas markets. The key objectives of the decarbonization process in the US are determined proceeding from the assumption that the country makes a bet on the long-term future of the global oil and gas sector and simultaneously intends to achieve net zero goals by 2050. The authors study methods (such as carbon capture, utilization and storage, direct air capture, broader use of hydrogen, reduction of gas flaring, etc.) and compare results of decarbonization carried out by the US (ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum) and European (Shell, Total, BP, Equinor) majors, as well as two key oil and gas companies in the Middle East: Saudi Aramco and ADNOC. The conclusion is made that currently the US oil and gas companies lag behind their European competitors in the energy transition sphere, and at the same time the main Middle Eastern players that employ similar approaches to reducing their carbon footprint are gradually catching up with them.