| FNI PROJECTS
Integration of the European Energy Sectors
Investment Strategies of Major Oil and Gas Companies
the 1990s the major European gas and electricity utilities responded to
regulatory changes at the EU and national levels by mergers and acquisitions
that led to a stronger integration of the two formerly separate sectors. In
response to EU removal of barriers to entry, mergers and acquisitions were
increasingly performed also across formerly closed national borders. In
response to the new rights given energy consumers to freely choose supplier,
the mergers and acquisitions increasingly involved vertical integration. In
response to harder environmental regulations, investment strategies
increasingly involved engagement in new energy sources and fuels.
project aimed at describing and analysing the response by major upstream oil
and gas companies to this development. Did the companies react uniformly to the
new challenges? If large differences in response can be seen, how could they be
explained? A major hypothesis was that differences observed in strategies might
be linked to differences in pace and ambitions of member countries to implement
regulatory changes instructed by the EU Commission. Another hypothesis was that
differences first and foremost reflected internal factors in the companies. In
the first stage of the project, a database of the oil and gas companies'
investment strategies in Europe during the 1990s was established. The patterns
revealed were further analysed and differences between companies are explained
in the second stage of the project.
The project was part of the Research
Council of Norway's PETROPOL
Project leaders: Jon
Birger Skjærseth and Per Ove
Eikeland, Per Ove and Ingvild
Andreassen Sæverud, 'Market Diffusion of New Renewable
Energy in Europe: Explaining Front-Runner and Laggard Positions'. Energy
& Environment, Vol 18, No 1, 2007, pp. 13-37.
Eikeland, Per Ove,
'Downstream Natural Gas in Europe
- High Hopes Dashed for Upstream Oil and Gas Companies'. Energy
Policy, Vol 35, No 1, 2007, pp. 227-237.
Eikeland, Per Ove, Biofuels - The New Oil for the Petroleum
Industry? FNI report 15/2005. Lysaker, FNI, 2005. 39
Eikeland, Per Ove, Henrik Hasselknippe, and Ingvild Andreassen
Sæverud, Energy Sector Integration
in Europe - The Role of Leading Upstream Oil and Gas Companies (Summary
version). FNI report 20/2004. Lysaker, FNI, 2004. 35 p.
Eikeland, Per Ove, The Long and
Winding Road to the Internal Energy Market - Consistencies and Inconsistencies
in EU Policy. FNI report 8/2004. Lysaker, FNI, 2004. 44 p.
The Research Council of