A new report by Wood Mackenzie has predicted that capital will increasingly be diverted by the oil majors from the upstream sector to build positions in wind and solar, as renewable energy sources are set to radically reshape the global energy markets, THIS DAY reports.

The report argued that renewables will satisfy only one per cent of the world’s energy needs in 2017, but will have captured a much bigger slice of the global energy market by the middle of the next decade. For the majors, the report noted that this poses a threat to legacy oil and gas operations, adding however, that shaping strategies to capture a piece of the renewables action, is also an opportunity to diversify and future-proof portfolios.

Wood Mackenzie’s new report, ‘Could renewables be the Majors’ next big thing?’ takes a closer look at the value proposition in wind and solar and the pace of the shift towards renewables out to 2035, with Wood Mackenzie’s Senior Vice President, Research, Corporate Analysis, Tom Ellacott, saying that the growth opportunity in renewables could not be ignored.