Why Big Oil Is Backing Away From Renewables
Key takeaways
- Energy Why Big Oil Is Backing Away From Renewables By Robert Rapier,
- Forbes contributors publish independent expert analyses and insights.
- Protesters at Marble Arch in London demonstrate against the Energy Intelligence Forum (EIF) summit, a gathering between Shell, Total, Equinor, Saudi Aramco, and other oil giants, being held in central London.
Energy Why Big Oil Is Backing Away From Renewables By Robert Rapier,
Forbes contributors publish independent expert analyses and insights. Robert Rapier is a chemical engineer covering the energy sector.Follow Author Jun 21, 2026, 11:05am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Summary Big Oil's anticipated full transition to Big Energy is proving more selective than expected. Companies like Equinor and BP are scaling back ambitious renewable targets, prioritizing capital discipline and higher returns from traditional oil and gas. Equinor dropped its renewable capacity goal, shifting to a broader power strategy including gas and trading, citing rising offshore wind costs. BP reversed its green pivot, increasing fossil fuel investment and selling wind assets. Shell also became more selective, focusing on LNG and upstream. TotalEnergies, however, continues building an integrated power business strategically. This shift reflects oil majors seeking attractive returns amidst lower renewable margins, intense competition, and investor demands for profitability over pure capacity, opting for profitable integration rather than wholesale conversion.
Protesters at Marble Arch in London demonstrate against the Energy Intelligence Forum (EIF) summit, a gathering between Shell, Total, Equinor, Saudi Aramco, and other oil giants, being held in central London. Picture date: Thursday October 19, 2023. (Photo by Jonathan Brady/PA Images via Getty Images)PA Images via Getty ImagesOver the past 20 years, the story seemed straightforward. Big Oil would gradually become Big Energy. Over time, oil majors would use their balance sheets, engineering expertise, and global project-management skills to build wind farms, solar projects, hydrogen hubs, carbon capture networks, and renewable power businesses.