Some of the world’s biggest oil companies are turning to startups to help plot their future.
Energy giants including BP PLC and Royal Dutch Shell PLC are bolstering their venture capital arms—increasing budgets, hiring more staff and doing more deals—seeking out new low-carbon technologies to help future-proof their profits.
The moves come as several big oil companies work to reduce their dependence on fossil fuels and expand their low-carbon activities, partly in response to growing pressure from investors and governments to cut emissions.
“They [BP leadership] really want the venture capital activity to help us execute on the new strategy,” said Meghan Sharp, head of BP Ventures.
Venture spending by oil companies represents only a small amount of their multibillion-dollar annual investment budgets. It is also sometimes aimed at boosting oil-and-gas operations, while some clean-tech entrepreneurs can be reluctant to sell to fossil fuel companies.
