Broken Promises, Broken Pledges: Big Oil's Play on Climate Promises

Why Big Oil breaks climate commitments

Fighting Big Oil in Ecuador, Credit, Amazon Watch

In June, Shell announced that the production of oil would remain steady until 2030, with the company planning to invest forty billion dollars in oil and gas production between 2023 and 2035, meaning the company will continue to invest big time in the sector.

Though Exxon Mobil plans to increase spending to $15 billion on greenhouse gas emission-reduction projects over the next six years, the oil giant plans to invest $20 to $25 billion per year to maintain its capital investments, as well as accelerate investments in high-return advantaged oil plays.

Earlier in the year, BP reported a record annual profit of $27.7 billion for 2022, but it plans to invest up to $16 billion more in developing its oil and gas projects over the coming decade, meaning it will renege on its promise to pare back on its plans to reduce oil and gas production.

Even when the earth breaks temperature records over the past 125,000 years, a situation propelled by the production and consumption of fossil fuel, Big Oil companies such as Shell, Exxon Mobil, and BP plan to invest huge sums of money towards the development of capital projects, especially in high-advantaged fossil fuel areas, all the companies reneging on their promise to take into consideration global concerns over the role played by their activities on climate change.

The income attributable to Shell shareholders  in 2022 stood at $42.3 billion, compared with $20.101 billion in 2021 and $21.680 billion in 2020, with its integrated gas earnings in 2022 reaching $22.212 billion, compared with $8.06 billion in 2021.

In the case of Exxon Mobil, its fourth-quarter 2022 earnings stood at $12.8 billion or $3.09 per share, while the full-year profits stood at $55.7 billion or $13.26 per share, an industry leading result in relation to earnings, cash flows from operations, and total shareholder returns.

As for BP, its annual profits stood at nearly $28 billion in 2022, the biggest in the company's 114-year history and more than double the year before, much of the development driven by the downstream consequences of Russia's invasion of Ukraine.

In sum, Big Oil companies continue to invest huge sums of money towards the development of capital projects in the fossil fuel sector because the profits they made in 2022 stood at very high levels, the biggest recorded by these companies in their history.

Amidst the record-shattering warmth of February, BP cut back on an earlier plan to lower its emissions by 35 percent by 2030, announcing that it would instead plan for a 20 to 30 percent scale-back only.

Big oil companies once paraded their investments in the algae biofuel sector as the future of low-carbon transportation, but Exxon Mobil, just like other majors, cut back on its algae biofuel spending, even though it had invested up to $350 million on the project, making many doubt its sincerity about cutting emissions.

In April, Shell cut back its involvement in the Northern Endurance Partnership (NEP) East Coast Cluster Carbon Capture and Storage (CCS) project in northern England, a plan to build 120 kilometers of pipelines to capture greenhouse gas emissions and store them under the North Sea.

BP, Exxon Mobil, and Shell now cut back on their plans to reduce emissions and build carbon capture projects because curtailing emissions won't allow the profits from the oil sector to stand at the biggest levels since they began business a few decades ago, a recognition that fuels the insistence of these companies to plan investing huge sums of money towards the development of fossil fuel projects in the foreseeable future.

Consequently, efforts should be made to curb BP's lust for profits, since it is the basis of the company's tendency to break climate pledges. The same thing applies to Exxon Mobil, because once its  desire for profits gets curbed, it would stop making outrageous investments in the fossil fuel sector. Shell's spendings should be curbed too, as well as the spendings by other oil companies. The climate crisis can only worsen if Big Oil's spendings in the fossil fuel sector don’t get curbed.

Five Surging Climate Technologies

Credit, Financial Times

Surging climate technologies refer to the rapidly advancing and innovative technologies that are being developed and implemented to address climate change and reduce greenhouse gas emissions. These technologies aim to mitigate the impacts of climate change and transition to a more sustainable and low-carbon future. Here are some examples of surging climate technologies:

(1) Renewable Energy: Renewable energy technologies such as solar power, wind power, hydropower, and geothermal energy are becoming increasingly cost-effective and widely deployed. 

They offer clean and abundant sources of energy, reducing the reliance on fossil fuels and decreasing greenhouse gas emissions. 

Market size - USD 988.26 billion in 2022 

Projected market - $1912.12 in 2030 

CAGR growth - 8.60 percent

(2) Energy Storage: Energy storage technologies, such as advanced batteries and pumped hydro storage, play a crucial role in integrating intermittent renewable energy sources into the grid.

They allow excess energy to be stored and used during periods of high demand or when renewable energy generation is low. 

Market size - $44.70 billion in 2023. 

Projected size - $87.24 billion by 2028 

CAGR 14.31 percent

(3) Electric Vehicles (EVs): The adoption of electric vehicles is growing rapidly, driven by advancements in battery technology, increased charging infrastructure, and government incentives.

EVs produce zero tailpipe emissions and contribute to reducing the carbon footprint of the transportation sector. 

Market size - $193.55 billion in 2022

Projected value $693.70 billing by 2030

CAGR 17.30 percent

(4) Smart Grids: Smart grid technologies enable better management and optimization of electricity distribution.

They incorporate advanced sensors, communication networks, and data analytics to improve energy efficiency, integrate renewable energy sources, and reduce energy waste.

Market size - $50 in 2022

Forecast - 130 billion by 2028

CAGR - 17.4 percent

(5) Green Building Technologies: Innovative building materials, energy-efficient designs, and smart technologies are being employed in the construction industry, fighting to reduce energy consumption, enhance insulation, and minimize waste. This includes features like solar panels, energy-efficient appliances, and smart home systems.

Market size - $377.03 billion in 2022

Projected growth - $422.27 in 2023 to $951.15 billion by 2030

CAGR in forecast period - 12.3 percent

These are just a few examples of the surging climate technologies that are emerging to combat climate change and promote a sustainable future. The rapid development and adoption of these technologies are crucial for achieving global climate goals and transitioning to a low-carbon economy.

What to Eat

Ghanaian vegan food, Credit, Meat Free Fitness