National oil companies, energy transition and sustainable development in the Middle East

Heidari, Hossein; Mohaqheghnia, Hamed; Jalalpoor, Shiva; Akbarzadeh, Feredoun

National oil companies, energy transition and sustainable development in the Middle East

Document Type : Original research

Authors

¹ Department of Political Science-International Relations, Khorramshahr International Branch, Islamic Azad University, Khorramshahr,Iran.

² Department of Political Science, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

Abstract

Sustainable development is often raised as a social issue that companies should pay attention to; because it presents both opportunities and challenges. In this regard, national oil companies should adapt their strategies to help their economy be more flexible in the global energy transition. Several leading Middle East and North African (MENA) national oil companies control large, undeveloped reserves with low production costs. This article by using case study methodology tries to identify the strategies of national oil companies in the MENA region in the age of energy transition. The argument of the article is that with the increase of uncertainties and the prospect of lower prices in the long term, the national oil companies of the Middle East and North Africa are considering different strategies to adapt their business models to these changes. The transition from extractive companies to the development of energy value, the transition from volume-oriented to value-oriented, more attention to natural gas and diversification in the downstream industry are the most important strategies of these companies in the age of energy transition. Meanwhile, countries in the region are also trying to pay more attention to corporate governance and transparent public communication to increase efficiency.

Keywords