Clean energy is setting up to become a priority for some oil and gas companies. Schlumberger – the oilfield services provider and Baker Hughes claim clean energy will rival some of their more traditional units by 2030. That’s why they count on green energy technologies like hydrogen and carbon capture technologies for growth.
According to Chief Executive Officer Olivier Le Peuch from Schlumberger citing the company’s forecast, investments for industries transitioning away from fossil fuels could sky-rocket from $300 billion a year in recent years to $1.6 trillion annually between 2030 and 2040.
1% of that $1.6 trillion over the next years, would equal the size of the company’s current oil and gas business. The CEO for Baker Hughes, Lorenzo Simonelli also claims that its carbon capture and hydrogen businesses could generate billions of dollars in annual orders by the end of the next decade. That could potentially equal the size of Baker Hughes’ turbomachinery and process solutions unit.
Clean Energy Investment Potential
Another report issued earlier this year by Fortune Business Insights™, says that the carbon capture and storage market is expected to become a $6.13 billion market by 2027 while Exxon, the oil giant, forecasts it will be a $2 trillion market opportunity by 2040. According to Goldman Sachs, green hydrogen investments are hot – the market could be worth $10 trillion by 2050 and could supply up to 25% of the world’s energy needs by 2050.
Baker Hughes plans to keep up with the energy transition and currently focuses on its oilfield service and equipment and industrial energy tech businesses which would be a stepping stone towards achieving that goal. The size of investments in clean energy was not specified by both companies.
Oil companies looking to invest in green energy are proof of the future potential that the net zero transition hides for traditional fossil fuel businesses. If they manage to keep their oil and gas businesses in operation while simultaneously investing in new green energy technologies like hydrogen and carbon capture, they could face growth opportunities and be prepared in case of sudden social and political pressures.