Legal Perspectives on Fostering Energy Transition through Oil and Gas Venture Capital

Abstract

The objective of this study is to discuss the connection between venture capital, energy transition and the oil and gas industry from a legal perspective. This article is grounded mainly in scholarly literature from law and economics and regulatory law and places them in the perspective of ESG and energy transition literature. The main methodology adopted for this study was review and discussion of scholarly work. The results obtained indicate that energy transition is a technical revolution and as such venture capital is a key part of it. At the same time, oil and gas companies have legal and technical expertise, capital and infrastructure that could accelerate the development of clean technologies. Moreover, since emerging technologies need more government support and a big part of the petroleum industry is composed by National Oil Companies, their direct involvement in energy venture capital would set the stage for substantial private sector involvement by demonstrating commitment and confidence, mitigating certain risks of the unproven energy technologies. The implications of this study are significant for scholars, lawyers in the field, policymakers and other private agents. Fostering the energy transition through an oil and gas venture capital legal framework would expedite the development of new technologies that could impact positively society. This study contributes to the literature by discussing important aspects of the connection between the petroleum industry, the venture capital industry and energy transition from a legal perspective.