Introduction
The oil and gas industry is one of most important part of modern economy and major proportion of global economy depends from companies operating in this sector. Nevertheless, nowadays exist a crucial challenge of energy transition to low carbon sources, what can significantly undermine this industry positions on market, especially in Western countries, where the measures for energy transition are most severe. In general, the process of economy move from fossil fuels to green energy is just a part of the sustainable development context that raise the awareness of global problems like climate change. In average, among researches there are a prevalent consensus of the role of oil&gas industry being responsible for most greenhouse emissions. Since, investors becoming more aware of global problems as well, they start allocating their capitals in sustainable companies more than in not sustainable. Therefore, the oil&gas companies are at the face of big risks of losing not only its positions in demand/supply energy chain due to appearance of new energy solutions, but also losing its investors, what in combination with current low oil prices and other internal industry problems could have very negative impact on oil and gas firms. As the result, O&G companies rethink their business models and planning to adopt its strategies to new low emissions reality. One of possible ways that actually is used is entering the renewable energy sector through conducting M&A deals. Therefore, the goal of this research is to show, how the stock market reacts to the transformation oil and gas companies in the context of mergers and acquisitions in the current conditions low carbon energy transition. In order to address the stated goal the next objectives have been formulated: Arrange the literature review covering issues oil&gas industry in context of low-carbon transition The literature review can be logically divided into three parts, in one part the issues of sustainable development and ESG, then narrowing discussion to oil&gas industry in the context of low carbon transition and finally the oil&gas business transformation. On the basis of this literature review the research gap will be formulated. Formulate hypotheses based on research gap  There will be a main hypotheses that will test short-term and long-term market reaction and in addition some supplementary hypotheses could be added in order to clarify the portrait of the companies that bring the highest returns. Develop and justify the research methodology Collect necessary data Perform an empirical study for testing hypotheses Formulate findings results implication Mention the space for further study The object of this study is– O&G companies acquiring renewable energy companies, while the subject is – the dynamic of abnormal stock returns.
The article discusses the role of O&G and their investors in the modern economy and the role of low carbon sources in the sustainable development. The main issue is the role of O&G and their investors in the transformation of their businesses through M&A deals. The main hypotheses are developed and evaluated on the basis of the literature review covering the issues of sustainable development and ESG, the low carbon transition and the role of O&G and their investors in the modern economy. The main findings and the implications are presented in the following pages.