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Abstract Oil has played a crucial role in the global economy since its discovery in the mid–19th century. Due to technological advancements, oil became a crucial energy source in the 20th century, and its demand has risen in tandem with economic advancements since its discovery (Fattouh et al., 2019). Apart from oil being crucial for modern transportation, as the International Energy Agency (IEA, 2018, p. 12) stated, "most items created today, from apparel to autos to agricultural inputs to medical stockpiles are all derived from fossil– fuel by-products". As per OPEC (2004) estimates, over the 20th and into the 21st centuries, industrial production of oil increased by roughly fifty (50) folds. Hence, oil was dubbed as the "lifeblood" of modern civilisation, and affectionately referred to as the "black gold" by industry players. And during this period fossil–fuels (oil, gas and coal) have been the most critical energy source available globally (Bahgat, 2003).Fossil– fuels supplied more than 85% of the total energy supplied or consumed in 2019 globally (IEA, 2019).As a result of being crucial to modern society and a key energy source globally, oil and gas have become a huge geopolitical tool. Oil reserves, price, ownership, and accompanying riches all have had an impact on global economics and geopolitics. The Paris Accord is a legally binding global treaty on climate change that was signed by 196 territories to "limit global warming to below 2°C, preferably 1.5°C, in contrast to pre–industrial levels". To remain within the global carbon emission targets, a sturdy energy transition with a reduction in fossil–fuel demand is needed (Rogelj et al., 2019). The Accord should serve as motivation for IOCs to adapt their corporate strategies to the evolving ecosystem of the energy transition. But the IOCs’ response, meanwhile, has been quite inconsistent up to this point. Some have refused to set concrete aims, and are spending more on initiatives that contradict the Paris goals and objectives (UNFCCC, 2016). Theenergy demand is expected to continue to rise as societies advance and citizens seek out an improved living standard.In 2017, energy demand soared, with fossil–fuels accounting for more than 80% of the energy mix.Hence, the want for "more energy and less carbon" is a doublesocial dilemma (BP, 2018: IEA, 2018). The emergence of issues regarding global warming, climate change, and the rise of the low–carbon economy has generated added pressure on states and corporations to reduce their carbon footprint (i.e. decarbonise) activities within their economies and corporations. It has become a change agenda to address issues regarding climate change, and this is due to greenhouse gas (GHG) emissions, especially carbon dioxide (CO2) from carbon– intensive fossil– fuel sources that have fuelled global economies for centuries. Hence,the need for profound changes to infrastructure, technologies, and behaviour to help reduce emissions. Failure to put these in place will escalate among others the likelihood of severe, pervasive and irreversible impacts on ecologies, that will threaten water security, livelihoods, agricultural production, and economic growth globally(OECD, 2013a; 2012).A prime example is the transition from a pre–industrial system built on water, traditional biomass, wind, and muscular ability to an industrial era marked by pervasive mechanisation, steam power, and coal (Grubler, 2012).This study aims to assess the shift in corporate strategy regarding factors arising due to the energy transition and how it is redefining corporate strategy. As stated, IOCs can't ignore energy transition, and corporate strategy is needed to adapt for future survival (Stevens, 2016).
Issah et al. (Fri,) studied this question.