‘This is serious stuff,” said BP’s Bernard Looney. The chief executive, speaking last week at the oil giant’s three-day investor event, was talking tough on the need to tackle the climate crisis. He could just as easily have been referring to the existential tightrope that BP, and others in the fossil fuel industry, will need to walk between investor confidence and the rising public pressure to slash their greenhouse gas emissions. Over the course of three days and 10 hours of executive presentations, Looney’s new leadership team sought to convince investors that their plan to become a carbon neutral company will allow them to toe this line successfully. BP’s nascent renewable energy interests will grow while the oil production business that has powered the company for over 110 years will begin to shrink within the next decade. A whiplash of clean energy innovation, carbon capture technologies and emissions offsetting schemes will then power the company to net zero carbon by 2050. In the minds of investors, there is no question that clean energy is a lucrative market, which can offer them exponential growth in the decades ahead as economies swap polluting fossil fuels for technologies that can meet our energy demands without the threat of soaring carbon emissions. But whether a company steeped in decades of crude and gas production will be able to harness this green growth remains to be seen.
Guardian 19th Sept 2020 read more »
The oil giant is seeking to free up investment for early-stage carbon capture and hydrogen projects. Shell is making deep cuts in its fracking business as it tries to free up cash to cope with the pandemic and invest in renewable energy. The international oil giant will cut about 40pc of overheads including staff in the US-focused shale oil and gas division by early 2021. The business includes seven projects in the US, Canada and Argentina, including in the core shale region of the Permian Basin, Texas. Shell along with other oil majors such as Exxon, Chevron and BP has looked to US shale as a source of growth in recent years, but falling oil and gas prices due to the pandemic have taken the shine off many assets and triggered heavy write-downs.
Telegraph 19th Sept 2020 read more »