The impact of energy transition in integrated oil companies

Sustainability and the need for an energy transition are among the most talked topics worldwide due to the repercussions it may have in future generations. As governments and international entities push towards a more sustainable framework, change is inevitable, and the Energy sector must accept the progress and be prepared to embrace new regulations and business models. However, such deep changes, impactful to the foundations in which society is built, are not sudden and will require time. Integrated Oil Companies should aim to understand the pace of transformation and how to redesign its own structures. This paper attempts to identify the main key issues and factors, how they currently affect these companies, and how they should be addressed. The analysis assumes a rational economic and social point of view, considering the principle of continuity, with companies having the objective of extending their economic activity and adapting to market conditions if required, and the principle of maximizing the value creation for all stakeholders, from consumers to shareholders or members of the society in which they operate