Rising oil prices help IOCs transition
Oil companies will have more cash available to invest in alternative energy, but high-target valuations mean M&A may be minimal
The sharp rise in oil prices since November, fuelled by signs that demand is picking up again, is an opportunity for IOCs to continue pursuing investments in alternative energy, Andy Brogan, global oil & gas sector leader at consultancy EY, tells Transition Economist. “A high oil price can cause a number of positive things. IOCs can reduce their gearing, pay out dividends and have spare money to invest, including capital to allocate to alternative energies,” Brogan says. “It also has a beneficial impact on their ability to raise funds outside of their cashflow.” Brent crude prices rose to a 13-month high of $67.70/bl on 25 February, returning to pre-pandemic levels. Having taken a heavy
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