Tezislər / Theses

THE 3
rd
 INTERNATIONAL SCIENTIFIC CONFERENCES OF STUDENTS AND YOUNG RESEARCHERS 
dedicated to the 99
th
anniversary of the National Leader of Azerbaijan Heydar Aliyev
455
ENERGY TRANSITION: EVOLUTION OR REVOLUTION? THE 
ROLE OF OIL AND GAS COMPANIES IN A NET-ZERO FUTURE. 
Aysel Mammadova, Sahil Talibov
Baku Higher Oil School
Baku, Azerbaijan 
[e-mail] 
[e-mail] 
Supervisor: prof. Siyavush Azakov 
Keywords:
 
energy transition, oil and gas companies, carbon, net-zero future 
The energy transition is the path to transforming the global energy sector 
from fossil fuels to zero carbon by the second half of this century. 
According 
to researches of “Energy knowledge institute “, the sudden transition to 
renewable energy can lead to taxonomy in several sectors today. 
An attempt 
to narrow down the taxonomy would be premature and probably futile, as 
transition needs to be considered from different points of view. As switching 
from fossil fuels to renewable energy sources. As switching from a 
fragmented energy sector to one in which the various strands are unified in 
a single interconnected and integrated sector. The objective is to have a 
sector that is optimal and appropriate for the future society and industry, as 
well as one that meets our collective social and environmental goals.
Looking forward, it is predicted that, oil and gas companies will have play 
great role in a net-zero future. But the transition was aided by lower 
renewable energy costs, investor and consumer pressure, and government 
regulation, as well as a new risk-sharing strategy considering oil price 
volatility and the high geopolitical risk associated with conventional oil and 
gas production. It is a fact that, 
the path of the largest oil and gas companies 
is still "in the early stages" in terms of the energy transition, and there is great 
uncertainty about the future trajectory, although the direction is clear. For 
main strategies should be addressing the energy transition. 
1. Reduce emissions and increase efficiency. 
Energy efficiency has a central role in tackling climate change, a task 
made all the more urgent by the recent rise in emissions and the limited time 
to achieve mitigation targets, as outlined by the recent Intergovernmental 
Panel on Climate Change (IPCC) special report on Global Warming of 1.5 C. 
For oil and gas companies’ emission reduction produces enormous socio-
economic advantages and addresses one component of climate change. 
While lowering emissions can be assessed economically, a competitive 
portfolio cannot be built just on the basis of the breakeven price; it must also 
consider the carbon footprint. Many businesses take this into account by 
including a carbon shadow price in project economics. It assists them in 
optimizing their portfolio in terms of both direct economic returns and carbon 
intensity externalities.

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