Spain’s Repsol has taken a historic move in preparation for the global energy transition to avoid the risk of stranded assets. It will no longer seek to grow its oil reserves. This crucial announcement, welcomed by shareholders, could presage similar changes among other large IOCs.

By Professor Paul Stevens, Chatham House.

In recent years it has become increasingly apparent that the old business model upon which international oil companies (IOCs) long depended is no longer fit for...