IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i17p6163-d896980.html
   My bibliography  Save this article

Strategic Planning of Oil and Gas Companies: The Decarbonization Transition

Author

Listed:
  • Alexey Cherepovitsyn

    (Department of Economics, Organization and Management, Saint-Petersburg Mining University, 21St Line V.O. 2, 199106 St. Petersburg, Russia)

  • Evgeniya Rutenko

    (Department of Economics, Organization and Management, Saint-Petersburg Mining University, 21St Line V.O. 2, 199106 St. Petersburg, Russia)

Abstract

In the face of increasing climate concerns and the intensive development of the renewable energy sector, oil and gas companies need to develop strategies to not only comply with the new rules of the game, but to also benefit from them. This study includes prospects for development of the global energy system along with analysis of decarbonization strategies for the largest players in the oil and gas market, and defines conceptual directions to improve strategic planning systems of oil and gas companies in order to ensure sustainability in the context of a global energy transition. The theoretical background of this study is based on the fundamental concepts and methods of strategic planning, as well as modern approaches to strategic planning in the oil and gas industry. This study makes three contributions. First, we maintain that a broad, systematic understanding of the consequences of energy system transformation and defining its role in the new market should be the crucial task of players in the oil and gas industry, and we clarify the opportunities and threats of transitioning to decarbonization. Second, the study results contribute to the development of the design theory of strategic planning systems by improving well-known methods and approaches with reference to global energy transformation. Third, we offer proposals for the development of a climate adaptation strategy using the example of a Russian oil and gas company based on the company’s business capabilities.

Suggested Citation

  • Alexey Cherepovitsyn & Evgeniya Rutenko, 2022. "Strategic Planning of Oil and Gas Companies: The Decarbonization Transition," Energies, MDPI, vol. 15(17), pages 1-26, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6163-:d:896980
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/17/6163/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/17/6163/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Magrini, Alessandra & Lins, Luiz dos Santos, 2007. "Integration between environmental management and strategic planning in the oil and gas sector," Energy Policy, Elsevier, vol. 35(10), pages 4869-4878, October.
    2. Harjanne, Atte & Korhonen, Janne M., 2019. "Abandoning the concept of renewable energy," Energy Policy, Elsevier, vol. 127(C), pages 330-340.
    3. Hoang, Anh Tuan & Sandro Nižetić, & Olcer, Aykut I. & Ong, Hwai Chyuan & Chen, Wei-Hsin & Chong, Cheng Tung & Thomas, Sabu & Bandh, Suhaib A. & Nguyen, Xuan Phuong, 2021. "Impacts of COVID-19 pandemic on the global energy system and the shift progress to renewable energy: Opportunities, challenges, and policy implications," Energy Policy, Elsevier, vol. 154(C).
    4. Coilín ÓhAiseadha & Gerré Quinn & Ronan Connolly & Michael Connolly & Willie Soon, 2020. "Energy and Climate Policy—An Evaluation of Global Climate Change Expenditure 2011–2018," Energies, MDPI, vol. 13(18), pages 1-49, September.
    5. Pavel Tcvetkov, 2021. "Climate Policy Imbalance in the Energy Sector: Time to Focus on the Value of CO 2 Utilization," Energies, MDPI, vol. 14(2), pages 1-22, January.
    6. Tatyana Semenova & Ali Al-Dirawi, 2022. "Economic Development of the Iraqi Gas Sector in Conjunction with the Oil Industry," Energies, MDPI, vol. 15(7), pages 1-31, March.
    7. Liu, Haiying & Saleem, Muhammad Mansoor & Al-Faryan, Mamdouh Abdulaziz Saleh & Khan, Irfan & Zafar, Muhammad Wasif, 2022. "Impact of governance and globalization on natural resources volatility: The role of financial development in the Middle East North Africa countries," Resources Policy, Elsevier, vol. 78(C).
    8. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    9. Gasparatos, Alexandros & Doll, Christopher N.H. & Esteban, Miguel & Ahmed, Abubakari & Olang, Tabitha A., 2017. "Renewable energy and biodiversity: Implications for transitioning to a Green Economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 161-184.
    10. Tatiana Ponomarenko & Ekaterina Reshneva & Alexander Patricio Mosquera Urbano, 2022. "Assessment of Energy Sustainability Issues in the Andean Community: Additional Indicators and Their Interpretation," Energies, MDPI, vol. 15(3), pages 1-27, February.
    11. Deger Saygin & Ruud Kempener & Nicholas Wagner & Maria Ayuso & Dolf Gielen, 2015. "The Implications for Renewable Energy Innovation of Doubling the Share of Renewables in the Global Energy Mix between 2010 and 2030," Energies, MDPI, vol. 8(6), pages 1-38, June.
    12. Irfan Khan & Fujun Hou, 2021. "The Impact of Socio-economic and Environmental Sustainability on CO2 Emissions: A Novel Framework for Thirty IEA Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1045-1076, June.
    13. Ahn, Kwangwon & Chu, Zhuang & Lee, Daeyong, 2021. "Effects of renewable energy use in the energy mix on social welfare," Energy Economics, Elsevier, vol. 96(C).
    14. Megan K. Seibert & William E. Rees, 2021. "Through the Eye of a Needle: An Eco-Heterodox Perspective on the Renewable Energy Transition," Energies, MDPI, vol. 14(15), pages 1-19, July.
    15. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    16. Alexandra Kopteva & Leonid Kalimullin & Pavel Tcvetkov & Amilcar Soares, 2021. "Prospects and Obstacles for Green Hydrogen Production in Russia," Energies, MDPI, vol. 14(3), pages 1-21, January.
    17. Hemrit, Wael & Benlagha, Noureddine, 2021. "Does renewable energy index respond to the pandemic uncertainty?," Renewable Energy, Elsevier, vol. 177(C), pages 336-347.
    18. Barry W. Brook & Tom Blees & Tom M. L. Wigley & Sanghyun Hong, 2018. "Silver Buckshot or Bullet: Is a Future “Energy Mix” Necessary?," Sustainability, MDPI, vol. 10(2), pages 1-14, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lijuan Zhang & Tatyana Ponomarenko, 2023. "Directions for Sustainable Development of China’s Coal Industry in the Post-Epidemic Era," Sustainability, MDPI, vol. 15(8), pages 1-32, April.
    2. Ekaterina Blinova & Tatyana Ponomarenko & Sofiya Tesovskaya, 2023. "Key Corporate Sustainability Assessment Methods for Coal Companies," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    3. Alina Cherepovitsyna & Nadezhda Sheveleva & Arina Riadinskaia & Konstantin Danilin, 2023. "Decarbonization Measures: A Real Effect or Just a Declaration? An Assessment of Oil and Gas Companies’ Progress towards Carbon Neutrality," Energies, MDPI, vol. 16(8), pages 1-19, April.
    4. Tobechukwu Eleogu & Franciscamary Okonkwo & Rosita Eberechukwu Daraojimba & Bukola A. Odulaja & Damilola Emmanuel Ogedengbe & Chioma Ann Udeh, 2024. "Revolutionizing Renewable Energy Workforce Dynamics: HR’s Role in Shaping the Future," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(12), pages 402-422, January.
    5. Pavel Tsiglianu & Natalia Romasheva & Artem Nenko, 2023. "Conceptual Management Framework for Oil and Gas Engineering Project Implementation," Resources, MDPI, vol. 12(6), pages 1-27, May.
    6. Natalya Romasheva & Alina Cherepovitsyna, 2023. "Renewable Energy Sources in Decarbonization: The Case of Foreign and Russian Oil and Gas Companies," Sustainability, MDPI, vol. 15(9), pages 1-26, April.
    7. Yasir Mahmood & Tanzina Afrin & Ying Huang & Nita Yodo, 2023. "Sustainable Development for Oil and Gas Infrastructure from Risk, Reliability, and Resilience Perspectives," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    8. Amina Andreichyk & Pavel Tsvetkov, 2023. "Study of the Relationship between Economic Growth and Greenhouse Gas Emissions of the Shanghai Cooperation Organization Countries on the Basis of the Environmental Kuznets Curve," Resources, MDPI, vol. 12(7), pages 1-20, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coilín ÓhAiseadha & Gerré Quinn & Ronan Connolly & Michael Connolly & Willie Soon, 2020. "Energy and Climate Policy—An Evaluation of Global Climate Change Expenditure 2011–2018," Energies, MDPI, vol. 13(18), pages 1-49, September.
    2. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    3. Iman Seoudi & Matthias Huehn & Bo Carlsson, 2008. "Penrose Revisited: A Re-Appraisal of the Resource Perspective," Working Papers 14, The German University in Cairo, Faculty of Management Technology.
    4. Altintas, Gulsun & Ambrosini, Véronique & Gudergan, Siegfried, 2022. "MNE dynamic capabilities in (un)related diversification," Journal of International Management, Elsevier, vol. 28(1).
    5. Pätäri, Satu & Kyläheiko, Kalevi & Sandström, Jaana, 2011. "Opening up new strategic options in the pulp and paper industry: Case biorefineries," Forest Policy and Economics, Elsevier, vol. 13(6), pages 456-464, July.
    6. Viktor Fredrich & Siegfried Gudergan & Ricarda B. Bouncken, 2022. "Dynamic Capabilities, Internationalization and Growth of Small- and Medium-Sized Enterprises: The Roles of Research and Development Intensity and Collaborative Intensity," Management International Review, Springer, vol. 62(4), pages 611-642, August.
    7. Thomas Thurner & Liliana Nikolaevna Proskuryakova, 2014. "Out of the Cold – the Rising Importance of Environmental Management in the Corporate Governance of Russian Oil and Gas Producers," Business Strategy and the Environment, Wiley Blackwell, vol. 23(5), pages 318-332, July.
    8. Indre Siksnelyte-Butkiene, 2021. "Impact of the COVID-19 Pandemic to the Sustainability of the Energy Sector," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    9. Abdulrahman Al–Aali & David J. Teece, 2014. "International Entrepreneurship and the Theory of the (Long–Lived) International Firm: A Capabilities Perspective," Entrepreneurship Theory and Practice, , vol. 38(1), pages 95-116, January.
    10. Donato Morea & Mohamad El Mehtedi & Pasquale Buonadonna, 2023. "Energy Context: Analysis of Selected Studies and Future Research Developments," Energies, MDPI, vol. 16(3), pages 1-6, February.
    11. Zhang, Jiahao & Chen, Xiaodan & Wei, Yu & Bai, Lan, 2023. "Does the connectedness among fossil energy returns matter for renewable energy stock returns? Fresh insights from the Cross-Quantilogram analysis," International Review of Financial Analysis, Elsevier, vol. 88(C).
    12. Jeffrey A. Martin, 2011. "Dynamic Managerial Capabilities and the Multibusiness Team: The Role of Episodic Teams in Executive Leadership Groups," Organization Science, INFORMS, vol. 22(1), pages 118-140, February.
    13. Jie, Huo & Khan, Irfan & Alharthi, Majed & Zafar, Muhammad Wasif & Saeed, Asif, 2023. "Sustainable energy policy, socio-economic development, and ecological footprint: The economic significance of natural resources, population growth, and industrial development," Utilities Policy, Elsevier, vol. 81(C).
    14. Bart Leten & Rene Belderbos & Bart Van Looy, 2016. "Entry and Technological Performance in New Technology Domains: Technological Opportunities, Technology Competition and Technological Relatedness," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1257-1291, December.
    15. Jiang, Wanxing & Gao, Han, 2023. "The nexus between natural resources and exports of goods and services in the OECD countries," Resources Policy, Elsevier, vol. 85(PA).
    16. Grazia Santangelo & John Cantwell, 2010. "The Restructuring of Technological Capabilities through Corporate Expansion," DRUID Working Papers 10-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    17. liu, Dong & Tian, Yulin & Son, SangBum, 2023. "Do ICT service exports and energy imports determine natural resource sustainability?," Resources Policy, Elsevier, vol. 85(PB).
    18. Mo Chen & Aseem Kaul & Brian Wu, 2019. "Adaptation across multiple landscapes: Relatedness, complexity, and the long run effects of coordination in diversified firms," Strategic Management Journal, Wiley Blackwell, vol. 40(11), pages 1791-1821, November.
    19. Usman Mehmood & Ephraim Bonah Agyekum & Hossam Kotb & Ahmad H. Milyani & Abdullah Ahmed Azhari & Salman Tariq & Zia ul Haq & Arif Ullah & Kashif Raza & Vladimir Ivanovich Velkin, 2022. "Exploring the Role of Communication Technologies, Governance, and Renewable Energy for Ecological Footprints in G11 Countries: Implications for Sustainable Development," Sustainability, MDPI, vol. 14(19), pages 1-13, October.
    20. Armenia Androniceanu & Oana Matilda Sabie, 2022. "Overview of Green Energy as a Real Strategic Option for Sustainable Development," Energies, MDPI, vol. 15(22), pages 1-35, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6163-:d:896980. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.