Why Big Oil companies invest in green energy

"Some major oil companies such as Shell and BP that once were touted as leading the way in clean energy investments are now pulling back from those projects to refocus on oil and gas production. Others, such as Exxon Mobil and Chevron, have concentrated on oil and gas but announced recent investments in carbon capture projects, as well as in lithium and graphite production for electric vehicle batteries."

"National oil companies have also been investing in renewable energy. For example, Saudi Aramco has invested in clean energy while at the same time asserting that it's unrealistic to phase out oil and gas entirely. But the larger question is why oil companies would invest in clean energy at all, especially at a time when many federal clean energy incentives are being eliminated and climate science is being dismantled, at least in the United States."

"Some answers depend on whom you ask. More traditional petroleum industry followers would urge the companies to keep focused on their core fossil fuel businesses to meet growing energy demand and corresponding near-term shareholder returns. Other shareholders and stakeholders concerned about sustainability and the climate-including an increasing number of companies with sustainability goals-would likely point out the business opportunities for clean energy to meet global needs."

Major international oil companies are alternating between refocusing on oil and gas production and pursuing limited clean energy projects such as carbon capture, lithium, and graphite for electric vehicles. National oil companies invest in renewables while maintaining that phasing out oil and gas entirely is unrealistic. Investment choices vary by company size, ownership structure, geography, and regional policy, and shareholder demands range from prioritizing near-term fossil fuel returns to emphasizing sustainability opportunities. Federal incentive changes and political contexts influence investment decisions. Despite modest current clean energy spending by oil firms, business drivers exist for increasing future investments over time.

Read at Fast Company