Investigating The Impact Of Crude Oil Prices On Renewable Energies And Its Strategic Implications For Canadian Oil And Gas Companies

Although many analytical methods have aimed at forecasting oil prices, all of them have failed to produce reliable forecasts due to the significant impact of  extraneous factors on crude prices. This study used a mixed-method of quantitative and qualitative methods to demonstrate while predicting oil prices might be impossible, there is a statistically significant relationship between oil prices and renewable energies.

Using econometrics methods, we have demonstrated that before the plunge in oil prices in 2014, there was a statistically significant interdependency between the share of renewables in the primary energy and the oil prices, but no such interdependency can be found afterward.

Based on the results obtained and a case study, I have concluded that regardless of the fluctuations in oil prices, the best strategic approach for Canadian oil and gas companies would be to diversify their portfolio and re-brand from "oil and gas companies" to "energy companies".