Tuesday , January 19 2021

Large oil consumed 1 percent of green energy in 2018

The largest oil and gas producers together spent about 1 percent of their 2018 budgets on clean energy, but European giants' investments have surpassed significantly their US and Asian competitors, according to a survey.

Crude oil is released into a bottle on this photo on June 1, 2017. REUTERS / Thomas White / Illustration

Companies such as the Royal Dutch Shell, Total and BP have accelerated spending on wind and solar energy, as well as battery technology, in recent years, seeking greater role in global efforts to reduce carbon emissions in the fight against global warming.

In recent years, investors have pushed pressure on fossil fuel companies, including Exxon Mobil, the world's largest oil company that trades in the public market, to reduce emissions, spend more on low carbon energy, and increase climate change releases.

But the transatlantic division remains broad, according to CDP, a climate-oriented researcher working with large institutional investors with $ 87 trillion.

"With less domestic pressure on diversification, US companies have refused renewable energy sources in the same way as their European peers," says CDP's report.

European oil companies make up about 70 percent of the renewable capacity of the sector and almost all developing capacities today, according to a CDP study.

(For the 'Oil & Gas Investments & Events' chart, click tmsnrt.rs/PdABFA)

Shell takes a package with future plans to spend $ 1-2 billion a year on clean energy technologies from a total budget of $ 25 to $ 30 billion. Norwegian Equinor plans to spend 15-20 percent of its budget on renewable sources by 2030.

Since 2010, Total has made the most use of low-carbon energy, around 4.3 percent of the budget, according to the study.

Overall, however, the world's largest public trading companies worldwide spent 1.3 percent of the total budget of $ 260 billion on low carbon energy in 2018.

This is still almost twice as much as 0.68 percent of the investment that the group achieved in the period from 2010 to 2017.

(For the 'Oil Major' capex & quot; capex & quot; click tmsnrt.rs/Phem1A)

Investments were accelerated following the 2005 climate change dispute in Paris, where governments agreed to reduce net emissions to zero by the end of the century to limit global warming to below 2 degrees Celsius.

Since 2016, 148 jobs have been made in alternative carbon capture, use and storage technologies (CCUS).

Energy companies are increasingly moving towards gas production, and the least polluted fossil fuels they say will play an important role in reducing emissions by replacing dirty coal and meeting the growing demand for electricity.

The Oil & Gas Initiative (OGCI), which brings together 13 world oil and gas companies, has pledged to reduce greenhouse gas emissions by the heels by 2025.

(For the 'Oil & Gas Investments & Events' chart, click tmsnrt.rs/PdABFA)

But critics say the sector is not doing enough.

"This 1-percent indicator compared to Big Oil's money implements blocking climate initiatives and regulations, and invests in fossil fuel projects that do not fit well below the 2 degree Celsius gradient," said Jeanne Martin from the ShareAction campaign group,

Last week, voters in Washington declined to vote in favor of creating the first carbon tax in the United States after the oil industry campaign claimed to hurt the economy.

"Investors need to boost their engagement and tell fossil fuel companies to align their business models with the goals of the Paris Accord," Martin said.

Reporting by Ron Bousso, Editor Louise Heavens

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