Will the layout of new energy affect the profit of oil companies?

In the current situation, will the attitude towards low-carbon transition affect the operation of oil companies?

Recently, major oil companies have announced their operating results for the first half of the year. Affected by the rise in oil prices in the first half of the year, most oil companies performed well.

According to the published operating data, European oil companies such as Shell, Total, and British Petroleum (BP) rank high, while American oil companies such as Chevron, ConocoPhillips, Occidental Petroleum, Phillips 66, and Marathon Petroleum rank relatively low. This difference appears to be related to the attitudes of different oil companies towards the low-carbon transition.

Recently, if you click on the official websites of major European oil majors, you will find that they have used eye-catching fonts to send a positive signal to visitors about the low-carbon transition, and elaborated on their transition strategies.

In the face of transformation, PetroChina has chosen a "two-legged" strategy.

Based on the correct strategic positioning and the strategic layout of "one step ahead", the domestic "three barrels of oil" have achieved excellent results in the first half of this year, with a total net profit of 125.5 billion, the best level in the same period in the past seven years.

In the traditional oil and gas field, the main strategic measure is to "stabilize oil and increase gas"

PetroChina announced that it will increase the proportion of natural gas production to about 55% by 2025; Sinopec said that it will make clean energy production account for more than 50% in 6 years, and it is expected that by 2023, the annual production capacity of natural gas will reach more than 40 billion cubic meters; CNOOC Limited aims to increase the proportion of clean and low-carbon energy to more than 60% by 2025, which mainly includes domestic natural gas, imported liquefied natural gas (LNG) and supporting new energy.

Develop low-carbon technologies to reduce carbon emissions in oil and gas production

For example, CNOOC proposed "green oilfields"; PetroChina and Sinopec have also increased investment in green production. In addition, forestry carbon sequestration and CCUS (carbon capture and storage) technology are also favored by the "three barrels of oil". Among them, PetroChina and Sinopec mainly focus on carbon neutral forests, while CNOOC mainly develops carbon sequestration technology.

In terms of new energy, we will actively develop the layout

Sinopec anchored the construction of "China's largest hydrogen energy company", announced the construction of 1,000 hydrogen refueling stations during the "14th Five-Year Plan" period, and later said that it planned to build a national hydrogen refueling company by 2025Swap stations5,000 units, giving full play to its advantages in more than 30,000 gas stations in China, transforming from traditional oil sales to a comprehensive energy service provider of "oil, gas, hydrogen and electricity".

PetroChina also announced this year that it will upgrade its new energy business to the largest business segment, alongside the oil and gas business. Wind energy, hydrogen energy, photovoltaics, geothermal, bioenergy, and new materials will be the development direction of PetroChina in the field of new energy.

Combined with its own advantages, CNOOC Limited has turned its attention to the offshore wind energy business, focusing on the development of offshore wind energy business, and the results have gradually been demonstrated. In addition, CNOOC Limited has also established a corresponding carbon neutrality research institute and a clean energy company, and signed China's first carbon neutrality service trust to fully help China achieve the "dual carbon" goal as soon as possible.

It is not so much a low-carbon transition as a new energy revolution.

Due to its own characteristics, compared with traditional oil and gas energy, the strategic location of new energy has higher objectivity and fairness, and the development of new energy mainly relies on technology rather than geographical resources, so the earlier it enters the game in this energy revolution, the greater the technological advantage in future development.

Oil and gas are still the main consumers of energy today, and natural gas is the preferred transition energy in the process of energy reform.

The energy transition is a long-term project, and only through the joint action of various means can we achieve better, faster and safer low-carbon development.