Here’s How Big Oil Could Play A Big Part In The Clean Energy Transition

Here’s How Big Oil Could Play A Big Part In The Clean Energy Transition

Oil companies are not getting left in the cold during the COP26 conference now taking place in Glasgow, Scotland. While it would appear antithetical to their mission — to produce and sell hydrocarbons — they also have the knowledge and the means to assist on the road to net-zero. Investors, climate activists, and state attorneys general have scrutinized Big Oil, forcing it to curb CO2 releases and to be more transparent about how it values its climate risks. That dynamic is behind the move to diversify their portfolios and to accept their role in human-caused climate change. But they are major natural gas developers, which is seen as a cleaner alternative to coal for electricity generation and for now, hydrogen production. Yes, oil companies could play a significant role in the hydrogen economy. Today most hydrogen is produced in reactions involving coal and natural gas — considered "grey hydrogen" that does nothing to limit CO2 emissions. Skeptics contend that oil and natural gas companies think of hydrogen as a vehicle to sell more hydrocarbons — the engine that is central to producing hydrogen. In other words, a power source is needed to break apart the hydrogen and oxygen from water.