European oil majors will spend more on hydrogen

Significance

The vast majority of their spending remains dedicated to oil and gas but the European majors, at least, are looking to lead on hydrogen production and distribution and build clean power generation for electric transport. They are also becoming more interested in renewable power generation.

Impacts

• The clean energy plans of European majors will continue to diverge from those of US majors and EU and other national oil companies.
• European oil majors’ relative enthusiasm for clean energy production will support the EU’s energy security and environmental agendas.
• Energy tensions with Russia will stimulate gas sector investment, particularly for liquefied natural gas (LNG) production.