Big Oil and the transatlantic divide: varieties of engagement with climate governance and the energy transition

This paper examines divergent approaches to climate governance and the energy transition away from fossil fuels by, respectively, North American and European International Oil Companies (IOCs). Whereas European IOCs are taking a more ‘progressive’ approach to transition, North American companies make a more ‘conservative’ bet on the resilience of global oil and gas demand. This notion of divergence can be inferred from recent research on how IOCs engage with climate governance, as well as earlier research on IOCs and climate change. Attempting to determine the existence of such a divergence and what factors are driving it, this examination is informed by the comparative logic of the ‘Varieties of Capitalism’ (VOC) literature and other research in the ‘varieties’ vein – e.g., the transatlantic divide in IPE and the varieties of resource nationalism. Thus, the paper investigates strategies adopted by IOCs, whether and how they can be categorised, and what factors may explain patterns of divergence. Explanations are sought in the varieties and IPE literatures, but also in the corporate histories of the IOCs. Finally, the paper considers the consequences of divergent approaches, for the IOCs, for the shape and pace of the energy transition and, thus, for our climate and collective future.