Multinational companies' five strategies to deal with high oil prices

As international oil prices continue to rise, major international oil and petrochemical companies have adjusted their investment strategies to withstand the high cost of oil prices. Specifically in the following five aspects.
The first is to integrate upstream and downstream industrial chains and increase downstream investment. Although transnational oil companies have formed a pattern of upstream and downstream integrated operations, there has been a long-term imbalance in upstream and downstream issues: upstream revenue and profits are far greater than downstream, causing investment to tilt upstream, resulting in insufficient general downstream investment. The insufficiency of downstream production capacity further constrains the supply of oil products, and plays a role in fueling high oil prices. In order to more rationally integrate the upstream and downstream industry chains, multinational oil companies have recently accelerated the technological transformation of existing large-scale oil refineries and built oil refining projects in areas with rapid growth in oil consumption in East Asia and South Asia.
Second, attach importance to the development and utilization of natural gas resources and increase the proportion of investment diversification. As a clean energy source, natural gas has rapidly risen in the proportion of one-time energy consumption. With the breakthrough of storage and transportation technology, the application prospect of natural gas is even wider, and it has become a new profit growth point. Multinational oil companies have gradually increased investment diversification efforts and shifted their business from oil to oil and gas. The integration of natural gas production, transportation and sales has risen to become one of the major business segments of many companies.
The third is to increase upstream investment and renew attention to oil and gas exploration and development in the old oil region. With the rise of international oil prices, the upstream business of oil and gas development is highly profitable. Whether it is an integrated multinational oil company or an independent oil company, it has continuously increased its investment in oil and gas exploration and development since 2000. At the same time, the rise in international oil prices makes the oil and gas resources that have a high part of mining costs in the old oil areas regain the economic value of exploitation. This part of the newly exploitable resources will undoubtedly greatly increase the world's oil recoverable reserves and become one of the significant benefits of high oil prices.
Fourth, the investment in exploration and development in the new area has increased, and the oil grabs in the world have become increasingly fierce. After entering the era of high oil prices, the regional exploration and development of multinational oil companies has shifted from the Middle East, the North Sea, and the United States, where hydrocarbons are abundant and easy to exploit, to non-enriched areas or Africa, the Caspian Sea, and other areas with relatively poor geological conditions. Land transfers to the sea and land, which has triggered a global battle for oil resources.
Fifth, increase research investment and vigorously develop unconventional energy and alternative energy sources. While continuing to implement oil and gas exploration and development activities, multinational oil companies are actively seeking new breakthroughs in the development of practical alternative energy sources and seizing opportunities for development. Such as BP and Shell to develop natural gas synthetic oil technology projects, and increase investment in wind energy, coalbed gas, oil sand resources.