CMS commissioned Capital Economics to assess the significance of the major oil and gas companies diversifying into renewables, and to provide economic analysis to assess the outlook for investment by these oil and gas companies in the energy transition globally.

Our report and findings are based in part on an extensive literature review, which includes a review of individual company reports, financial statements and stated strategies of our sample of fifteen oil and gas majors. In addition, we drew on respected public sources to inform our views on the current state of, and future longer-term trends in, the global energy mix including the International Energy Agency (IEA), BP, and the International Renewable Energy Agency (IRENA). We also used data from the World Bank and the United Nations to help underpin our regional economic analysis.

Our forecasts for the outlook of investment in renewable energy are underpinned by two scenarios put forth by the International Renewable Energy Agency (IRENA). We used our analysis of the current levels of investment in renewable energy by our sample of fifteen major oil and gas companies, as well as assumptions regarding the speed of transition, to generate plausible projections for future diversification.