Research Article
Analysis of Oil Industry in Energy Transition Process—A PCA Approach to Analyse BP Company
@INPROCEEDINGS{10.4108/eai.9-12-2022.2327701, author={Jinming Gu}, title={Analysis of Oil Industry in Energy Transition Process---A PCA Approach to Analyse BP Company}, proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China}, publisher={EAI}, proceedings_a={MSIEID}, year={2023}, month={3}, keywords={energy transition ccs technology renewable diesel oil industry pca}, doi={10.4108/eai.9-12-2022.2327701} }- Jinming Gu
Year: 2023
Analysis of Oil Industry in Energy Transition Process—A PCA Approach to Analyse BP Company
MSIEID
EAI
DOI: 10.4108/eai.9-12-2022.2327701
Abstract
Climate change has become an increasingly severe issue due to frequent human activity. The global temperature is rising faster than ever, and it damages the ecosystem while increasing extreme events and threats to humans' daily lives. The need of alleviating climate change has become the top priority for many industries. This paper is aimed to study the role of the oil and gas industry in the energy transition process, since oil and gas industry, as one of the main producers of carbon dioxide, should take active action in achieving the goal of transferring 'oil and gas' to 'renewable energy' eventually to protect the environment. In this article, the author takes BP company as an example to have a deeper insight into oil and gas industry. The author analyzes the financial statement data by calculating different ratios to better understand BP's financial situation. Then principle component analysis (PCA) method is used to filter important figures by reducing 120 selected variables to 8 final principle components. This reduces the dimension of the original data and will help further data analysis. Besides, this article deeply analysis the necessity of Carbon Capture and storage technology (CCS), Direct Air Carbon Capture and Sequestration (DACCS) and the application of renewable diesel. The author believed that the application of these will be extremely useful during the energy transition.