May 17, 2018
Spanish Repsol will change the focus of its business. It does not want to grow in the oil and gas sector, but wants to make a transition to the cleaner energy segment. The Spanish company is the first among its peers to take such a measure. This shows how the strategic decisions of the sector are beginning to be influenced by emission limits, electric cars and renewable energies, which has generated questions about the force of long-term demand. Repsol will release a business plan that will be updated in June, limiting oil and gas production to current levels and ensuring that the company does not keep more than eight years of reserves in its records. This reserve time would be shorter than that of most of their peers.
Repsol has already announced that it wants to be known as an energy company and not as an oil company. At the annual shareholders’ meeting last week, the Chairman of the Board, Antonio Brufau, dedicated a significant part of the speech at the event to talk about climate change. “Have no doubt that we are fully committed to the fight against climate change. The wind and solar energy are already very competitive and in the future electric cars will also be part of Repsol’s business. ”
Even if it renounced the growth of the hydrocarbons business, Repsol would continue to be a major producer of oil and gas. The company pumped an average of 727,000 barrels of oil equivalent per day in the first quarter, the highest level since 2012, and gas accounts for 63% of the total. Repsol continues to seek new fields to replenish reserves, replacing 93 percent of what it produced in 2017 and 124 percent the previous year. The company seeks to enter the renewable energy market. Other major European oil companies are adopting similar measures. Shell is building supply stations for hydrogen and electric vehicles and has acquired an electricity supplier. Norway’s Statoil has withdrawn fossil fuel from the name, now called Equinor, and is developing floating wind farms as well as oil and gas fields.