Adaptive business policies for the energy transition: Balancing short-term profitability with long-term sustainability in oil and gas companies
1 TotalEnergies EP Nigeria; Lagos, Nigeria.
2 ExxonMobil, Lagos, Nigeria.
3 Department of Business Administration, Faculty of Administration and Management, Rivers State University, Nigeria.
4 Department of Mechanical Engineering, University of Ibadan, Nigeria.
Review Article
GSC Advanced Research and Reviews, 2024, 21(01), 439–450.
Article DOI: 10.30574/gscarr.2024.21.1.0397
Publication history:
Received on 16 September 2024; revised on 22 October 2024; accepted on 25 October 2024
Abstract:
This review examines the challenges and opportunities faced by oil and gas companies as they navigate the global energy transition, focusing on the delicate balance between maintaining short-term profitability and ensuring long-term sustainability. As the world shifts towards cleaner energy sources, traditional fossil fuel companies are under increasing pressure to adapt their business models and strategies. This study synthesizes current literature on adaptive business policies, sustainability initiatives, and their impacts on the oil and gas industry's future. Through a comprehensive analysis of case studies and empirical research, we identify several key mechanisms through which companies can effectively balance short-term financial objectives with long-term sustainability goals. These include diversification into renewable energy, investment in carbon capture and storage technologies, and the adoption of circular economy principles. Our findings suggest that successful adaptation requires a nuanced understanding of market trends, strong leadership commitment, and strategic use of technology and innovation. The review also highlights the potential of partnerships and collaborations in accelerating the transition process. By identifying key factors contributing to successful adaptive strategies and their subsequent impacts on both profitability and sustainability, this study provides valuable insights for industry leaders, policymakers, and researchers working towards a more sustainable energy future. Future research directions are proposed to further explore the long-term viability and scalability of these adaptive business policies across different market contexts.
Keywords:
Energy Transition; Oil and Gas Industry; Sustainability; Adaptive Business Policies; Profitability; Innovation
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
