Big Oil Companies Form Alliance with Microsoft

Big Oil Companies form Alliances with Microsoft

Earlier this year, oil and gas juggernaut BP announced its goal to become a net zero emissions company by 2050 and to help deliver a net zero carbon future. By the end of the decade, it aims to have developed around 50 gigawatts of net renewable generating capacity, a 20-fold increase on what it has previously developed. It will also increase annual low carbon investment 10-fold to around $5 billion, and cut oil and gas production by 40%.

Meanwhile, in January 2020, Microsoft announced its goal to be carbon negative by 2030 and to remove more carbon from the environment than it has emitted since its founding by 2050.

Now the two have joined forces. As a result of these goals, BP and Microsoft Corp. announced an agreement on September 15 to collaborate as strategic partners to further digital transformation in energy systems and advance the net zero carbon goals of both companies. Included is a co-innovation effort focused on digital solutions and the continued use of Microsoft Azure as a cloud-based solution for BP infrastructure, and supplying renewable energy to help Microsoft meet its 2025 renewable energy goals.

This expands on BP’s existing relationship with Microsoft, which helped accelerate the digitization of BP infrastructure and operations, while Microsoft 365 enabled greater collaboration and remote working productivity during the COVID-19 response. In addition, BP will supply renewable energy to Microsoft across multiple countries and regions including the US, Europe and Latin America.

Then on September 22, Shell International Petroleum Company Limited and Microsoft announced they are embarking on a new strategic alliance to support progress towards a world with net-zero emissions. This strategic alliance will support Shell’s goal of being a netzero emissions energy business by 2050. Their supply of renewable energy will help Microsoft deliver on its renewable energy supply goals and its broader goal to be carbon negative by 2050.

The alliance builds on the strong foundation of three decades of technology collaboration between the two companies. In the past three years alone, they have worked together on artificial intelligence (AI) to drive transformation across Shell’s operations through access to real-time data insights, worker and onsite safety, and delivering efficiencies to its suppliers and customers. This has helped reduce Shell’s carbon emissions and footprints. They will also explore options on working together to help advance the use of sustainable aviation fuels.

Shell continues to use Microsoft’s Azure cloud computing system and data from Shell’s assets to strengthen operational safety, by improving risk analysis, prediction and prevention. Microsoft Azure powers Shell’s Autonomous Integrity Recognition (AIR) system, which uses image recognition algorithms to detect when equipment or parts of a site are susceptible to corrosion.

All three companies are committed to accelerating their work together to drive efficiencies and reduce emissions for a better future. ■