Why Big Oil Can’t Make the Renewable Energy Transition
Big oil companies are starting to consider what the world will look like after the reign of petroleum is over. For example, Royal Dutch Shell (NYSE: RDS-A) recently announced it will invest $1 billion per year in clean energy -- a large number, but still a relatively small investment compared to its $25 billion in annual capital spending. Nonetheless, it was a public admission that clean energy is the future, not oil. Rival Total (NYSE: TOT) has, arguably, made the biggest investments in renewable energy, buying two-thirds of solar solutions leader SunPower (NASDAQ: SPWR), battery company Saft, and stakes in a number of solar power plant projects.
Chevron (NYSE: CVX) and BP (NYSE: BP) have also been in and out of the renewable energy business over the past decade, though both have taken steps back recently. ExxonMobil (NYSE: XOM) is really the only holdout among the hydrocarbon majors, continuing to focus solely on fossil fuels. What the rest of them are trying to do is create a path to a world beyond oil. But these old-school energy industry giants have a long road ahead to reach powerhouse status in renewable energy.
Image source: Getty Images.
Source: Fool.com
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