European Majors Lead the Way in Renewable Presence Establishment
The European majors are leading the way in shaping strategies to establish a presence in the fast-growing renewables market, according to Wood Mackenzie.
Woodmac expects capital to increasingly be diverted from upstream to build positions in wind and solar, and revealed that renewables could account for over one fifth of total capital allocation for the most active players post-2030.
The organization admitted however that wind and solar on their own are not going to transform growth prospects for the peer group as a whole.
“The scale of the opportunity is simply not there on our forecasts for solar and wind, at least not in the next 20 years,” Tom Ellacott, senior vice president for corporate analysis research at Wood Mackenzie.
“We estimate spend of US$350 billion on wind and solar out to 2035 is needed for the majors to replicate the 12 percent market share they hold in oil and gas,” he added.
Wind and solar are increasingly important strategic growth themes that the majors cannot afford to ignore as they plan for 2035 and beyond though, according to Wood Mackenzie.
“Companies are only just starting to sow the seeds for the radical changes that lie ahead,” a company spokesperson said in a Woodmac statement.
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