Many established industries are experiencing profound disruption. Incumbents must adapt to survive and not all will reinvent themselves successfully to remain dominant players in the future. The energy sector is a case in point, with a green revolution forcing oil majors to rethink how they do business. While London-listed energy giant BP (BP.) appears to now want to grasp the nettle with new green targets, there could be a treacherous road ahead for the company and its new chief executive.
Free cash flow to rise
Green transition has started
Reliance on oil and gas to continue
Last year could have been peak oil demand
Dividend cut
Still paying off Deepwater Horizon
The company sees its recent revamp as a reinvention – another one – but the oil crash of 2020 has shown a splash of green spending does not mean it will cease to be a fossil fuel company any time soon. At the same time, greater take-up of electric vehicles and major decarbonisation plans mean oil demand will no longer keep climbing.