With reports of oil giants writing off assets by the billions and revenue forecasts not looking good. Is this the beginning of the end for the oil giants?
Shell recently reported that they devalued their company by $22 billion dollars. BP reported they’ve devalued by $17 billion. This really shows that these companies are now recognising that the demand for oil is decreasing and the demand for renewable energy is increasing. For example BP have declared it will become a low carbon company in the near future. Shell have declared a major restructure to anticipate the move to green energy.
Some have already made the leap to green energy. To get rid of the “dirty” image associated with their name they even rebranded. Formerly known oil giant DONG (Danish Oil and Natural Gas) changed to Orsted. They made the change from oil leader to 100% renewable energy back in 2017!
This is what happens when billions fall off historically large and successful companies and they start losing money. Things start to change. It looks like they have finally realised that oil’s time is up and the future is green. Industry experts don’t expect it to get better either. In the past 15 years oil assets have decreased in value by $450 billion. They expect there to be a further devaluation of $300 billion. It has finally hit them where it hurts. Their pockets!