Oil companies face a slippery path on their energy transition journey. Pivot too quickly to clean energy and valuations fall in anticipation of poor future returns. Budge too little and your board risks getting a revamp by an activist investor (a la Exxon Mobil).
Major European oil companies such as BP , TotalEnergies and Royal Dutch Shell have all taken the fast-track path, pledging to plow more sizable portions of their budgets into renewable energy with so-so returns. Their valuations have slipped accordingly, but investors may have been too quick to judge.