Major oil and gas companies are investing in the development of renewable energy sources to take advantage of the transition from fossil fuels to green-sourced energy which will power both homes and electric vehicles. Due to market realities and opportunities, and shareholder pressures to reduce CO2 to combat climate change, companies including Shell, Exxon and Chevron are spending billions of dollars on renewable assets.
With heavy investment in green energy generation technology and infrastructure, oil companies will be able to accelerate the trend toward grid parity between fossil and green energy, which is the key to creating mass adoption. Also, major automakers are moving towards electric vehicle models, and most EV consumers prefer green energy as the fuel source, which will increase the demand for renewable electrical power on the grid, and in turn reduce demand for fossil-sourced electricity.
Shell Oil’s Deep Dive into Green Energy
Oil companies are looking to mergers and acquisitions to reduce the investment risks of the renewable energy market. In 2017, Shell Oil Company acquired MP2 of The Woodlands, Texas, which specializes in the wholesale market for green energy. MP2 also partners with Tesla to provide green energy to owners of its Tesla solar panel homes.
In 2019, Shell began a relationship with Electricity Club, whose Home Energy Club and Get Green Energy price parity platforms will digitally market the Shell-MP2 brand of green energy directly to the consumer market. Electricity Club has a unique model for creating grid parity to initiate mass adoption of renewable energy that actually saves consumers money.
Shell’s diversification into renewable energy due to the market transition away from fossil fuels, and the importance of reducing CO2 emissions, will bring about a much faster movement toward green energy. In 2019, Shell declared that it would become the largest electricity company in the world, which will provide it with a major hand in influencing the growth of green energy in the retail energy market.
Finding Ways to Reduce CO2
You might be surprised at the amount of CO2 emitted by a fossil-sourced energy plans, and can be removed from the environment by taking the simply act of switching to a green energy plan.
Shell is investigating other new avenues to reduce CO2. More than one-third of energy-related CO2 emissions in the United States comes from the transportation, and Shell’s “Sky Scenario” is exploring how renewable options can shape transport for the next 80 years. This will impact the shipping industry, as one concept is to convert truck haulers from diesel fuel to hydrogen fuel, and the vehicle’s exhaust would simply be water vapor. Shell is also testing options for aviation fuel that will reduce carbon emissions.
Economical Electric Cars
Electric cars are rolling batteries capable of storing energy produced by renewable sources such as wind energy and solar energy. The EV’s stored energy could be sold back to the grid while the car is plugged in and not in use. The consumer would receive a cash credit and have enough power to drive the vehicle.
ExxonMobil entered a $500 million JV with Synthetic Genomics to engineer algae that produces renewable crude from sunlight and carbon monoxide. Chevron is investing in wind, solar, and geothermal energy sources for the residential market.
Companies such as Electricity Club are building consumer platforms with oil companies to service the EV market. The company’s ElectricFillup program will allow consumers to purchase renewable energy time of use plans for electric cars at discount rates.
Electric Companies in Texas Offering Cheap Green Energy
In addition to Big Oil’s efforts to address climate change and meet consumer demand, electric companies in Texas like Gexa Energy, Green Mountain Energy, Reliant Energy, TriEagle Energy and Pulse Power will market green electricity plans at grid parity rates. You can now buy cheap solar energy without investing in costly solar panels. You’ll be able to determine the amount of electricity use by your EV by reviewing your energy usage data at Smart Energy Texas.
Check out our Texas electricity glossary to gain knowledge about electricity terms.