A model for assessing the economic impact of renewable energy adoption in traditional oil and gas companies
1 Independent Researcher, UK.
2 Independent Researcher, Houston Texas, USA.
3 Independent Researcher, Texas USA.
Review Article
GSC Advanced Research and Reviews, 2024, 20(03), 298–315.
Article DOI: 10.30574/gscarr.2024.20.3.0355
Publication history:
Received on 17 August 2024; revised on 25 September 2024; accepted on 27 September 2024
Abstract:
The adoption of renewable energy presents significant economic implications for traditional oil and gas companies. This paper proposes a model for assessing the economic impact of integrating renewable energy into traditional oil and gas operations, focusing on cost efficiency, revenue potential, and overall financial performance. The model evaluates key metrics, including capital investment, operational cost savings, revenue generation from renewable energy projects, and potential impacts on profitability and shareholder value. By incorporating various renewable technologies such as solar, wind, and geothermal, the model provides a comprehensive framework for understanding the financial benefits and challenges associated with transitioning to cleaner energy sources. The model incorporates both direct and indirect economic impacts, such as reduced energy costs, enhanced energy security, and improved corporate reputation. It also considers the effects of regulatory incentives, including tax credits and subsidies, which can influence the financial viability of renewable energy projects. Additionally, the model examines potential risks and uncertainties, such as market volatility and technological limitations, which can affect the economic outcomes of renewable energy investments. Case studies of traditional oil and gas companies that have successfully integrated renewable energy are analyzed to illustrate the practical application of the model. These case studies demonstrate how companies have achieved cost reductions, diversified revenue streams, and enhanced their long-term financial resilience through renewable energy adoption. The paper concludes that while the initial investment in renewable energy technologies can be substantial, the long-term economic benefits—including cost savings, revenue growth, and alignment with sustainability goals—can significantly outweigh the challenges. By adopting the proposed model, oil and gas companies can better assess the economic implications of renewable energy integration and make informed decisions to drive sustainable growth and profitability.
Keywords:
Renewable Energy; Oil And Gas, Economic Impact; Cost Efficiency; Revenue Potential; Financial Performance; Capital Investment; Operational Savings; Regulatory Incentives; Sustainability Goals.
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