Nigerian Oil and Gas Industry in an Era of Energy Transition: Analysis of TotalEnergies’ Activities in Nigeria

Abstract

The oil and gas sector faces a significant quandary resulting from the need for global energy sources to move away from fossil fuels to more sustainable and environmentally friendly sources. Many International Oil Companies (IOCs) give the impression that they are transitioning to ‘cleaner energy’ due to environmental pollution caused by excessive carbon emissions from extracting and processing oil and gas resources by IOCs. However, literature suggests that many IOCs are welcoming these changes because we may run out of our present energy sources within the next 100 years. The study used an exploratory design approach to appraise the Nigerian oil and gas sector during a contemporary period of energy transition, with a focus on the activities of TotalEnergies. Study findings show that geopolitical machinations have long hampered the operations of IOCs in Nigeria, distorting the equitable allocation of the country’s oil and gas resources. On the surface, TotalEnergies’ energy transformation initiatives appear quite realistic, however, the company finds it challenging to completely achieve the goals of its energy transition agenda due to the geopolitical complexity in Nigeria. The study proposes a four-dimensional strategy for enhancing economic viability during the energy transition: Advocating for better regulatory mechanisms, enhancing host communities’ development, concentrating on gas production in the transition era, and focusing on renewable energy development. The study recommends that more effort should be made by IOCs in renewable energy investment to foster sustainable energy development in the coming decades.