R&D spending by oil companies is at risk as firms cut costs. Critics argue that the cuts come at the time when investment is most needed in order to maintain current growth using new technologies and to develop alternative energy. Among large oil firms, Royal Dutch Shell and Total spent the most on R&D in 2013, allocating $1.32 billion and €949 million ($1.27 billion), respectively. As a percentage of sales, Total’s proportion was the highest at 0.6% of revenues. In contrast, Eni, BP and Exxon had the lowest proportions, at around 0.2% each. Chevron and BP have both recently cut back on renewable-energy investments. This also comes at a time when electric cars are becoming more economically competitive with gas-fueled cars. As companies try to curtail investments, they increasingly rely on oil-service firms, such as Halliburton and Schulumberger, which spent 2.0% and 2.6% on sales on R&D last year, or $1.17 billion and $588 million, respectively. Oil-service firms also use their investments in technology to compete with oil companies in helping nations develop oil assets.

Source: Financial Times