Big Oil is spurning green pressure to ditch fossil fuels

HOUSTON Texas — Major energy firms are ignoring this warning pressure Environmental groups and shareholders urge the government to cut back on spending for developing countries fossil fuels Instead, invest in low carbon energy Sources anticipate high oil demand and earnings potential for many years.

Chevron and BP, energy giants, have large amounts of cash left over from record-breaking oil and natural gas prices in 2022. Inflation Reduction Act – the landmark climate and health bill passed last year by Democrats, signed by President Joe Biden in January – provides new incentives for the sector to access hundreds of millions of dollars. This is to help expand low-carbon technologies such as renewable energy and carbon capture.

However, some major oil producers are now considering reversing earlier plans to lower oil production. While others plan to maintain modest spending in areas likely to allow the growth of oil production. “green transition” When compared with traditional oil and gaz business.

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After years of effort by environmentalists and the Biden administration to make drilling for oil more expensive and difficult, this retrenchment is finally happening. Also, market pressures have reduced capital expenditure on oil projects. These factors prompted energy companies to invest more to diversify their portfolios and lower greenhouse gas emissions over the past few years in order to reach net-zero in 2050 according to the Paris climate accord.

However, these pressures have been rendered insurmountable by the geopolitical turmoil and the economic disruption caused by the war in Ukraine.

Bernard Looney is the CEO of BP reportedly Privately, the frustration expressed by employees at the low return on company’s ventures in renewable energy.

In February, the company retracted its plans to reduce its fossil fuel production by 40% by 2030 and committed to cutting 25% by next year.

BP plans to invest $8B over the next 7 years. “energy transition,” Technologies such as solar, wind and electric vehicle charging.

Over the same time, $8 billion will be devoted to oil and gas.

“We’re all in on making the transition work,” Looney spoke Tuesday during remarks made at CERAWeek, an annual conference on energy by S&P Global. “We can’t take our eye off the energy system.”

Shell, a competitor to BP, recently revealed that it was reviewing a plan to reduce oil and gas production between 1% and 2% annually by 2030. Shell CEO Wael Sawan stated that cutting production was essential. “not healthy,” Given the location of the global market.

“I am of a firm view that the world will need oil and gas for a long time to come,” Sawan stated.

Shell and BP both have European headquarters. Large banks and financial institutions can be found in Europe. moving more aggressively To limit financing for fossil fuels compared to their U.S. counterparts.

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