THE APPLICATION OF RENEWABLE ENERGY SOURCES IN THE OIL INDUSTRY: A STRUCTURED REVIEW AND STRATEGIC IMPLICATIONS FOR BOSNIA AND HERZEGOVINA

The energy transition represents an inevitable technological advancement, posing significant challenges for the oil industry. This paper analyzes the challenges and opportunities faced by the oil sector within the context of the global energy transition and the principles of sustainable development. The research is based on the assumption that, due to the depletion of fossil fuels and increasing environmental pressures, the oil industry must undergo transformation to ensure long-term economic sustainability. By examining key concepts such as the green economy and sustainable development, the paper explores the impact of international regulatory frameworks, including the CBAM mechanism, on business operations. It provides a detailed assessment of the economic justification and environmental benefits of integrating renewable energy sources into the business models of oil companies. The practical implementation of solar energy and other renewable sources is considered a strategic imperative for reducing operational costs and enhancing competitiveness. It was analyzed how the existing infrastructure of the oil company can be used in the area of ​​Bosnia and Herzegovina and Republic of Srpska to diversify its business model. The transformation from traditional oil companies into modern energy enterprises is presented not only as an environmental obligation but also as a key economic strategy for achieving efficiency and profitability.