Dividing lines appear in transition approaches

Differences have emerged between how IOCs and NOCs are tackling the energy transition—and the size of oil and gas reserves also has a big impact

Oil and gas companies worldwide are facing up to the business model challenges posed by global climate change mitigation and the related energy transition. But companies’ reaction to the challenges varies depending on three factors: whether they are based in an OECD member or not; their shareholder base and public image; and their resource portfolio, which will often dictate the relative advantage specific emissions control actions. Divisions have emerged between the strategies followed by international oil companies (IOC) and national oil companies (NOC) that are playing out under a cascade of regulations being issued by major energy markets, particularly the advanced industrial economies o