The greening of the European petroleum industry

This article analyses the European petroleum industry's climate engagement over the two first decades of this century. It studies strategic visions and business models, alongside revenue streams and investment patterns, in the five largest European petroleum companies. The analysis shows how the European petroleum majors, starting from ‘climate negligence’, gradually moved into ‘clean petroleum’ and ended up with visions of ‘net zero’ transition out of oil and gas, while revenue streams remained almost exclusively petroleum-based. It displays how the gap between economic realities and professed climate strategy responds to contradictory signals from politics and markets. While European politicians stepped up expectations for radical CO 2 reduction, markets supported petroleum. Companies therefore adjusted climate-strategic visions to political pressure for legitimacy, while adapting commercial practice to profits from oil & gas markets. Finally, our study demonstrates how policy and markets could be better realigned. For example, the EU's Green Deal, in tune with declining costs of renewables and rapidly increasing CO 2 prices, presents interesting paths towards profitable greening. Early moves from pioneering petroleum companies demonstrate that it can be done. However, greening European energy production is not enough. Climate effects will only come if consumption follows suit.