Two recent reports warn that the world needs to significantly reduce oil and gas production if the Paris Agreement is to achieve its goals and curb climate change. They add to the body of research calling for big oil to stop growth. But Big Oil seems to be doing the opposite.
In early September, one of Italy’s top executives, Connie, announced new oil discoveries in Ivory Coast. The company estimates the new production capacity between 5 billion and 2 billion barrels of crude oil and 1.8-2.4 trillion cubic meters of natural gas.
Last week, Exxon reported another discovery on Guyana beach – the twentieth in the Stroke block. The Guyana government is planning to exploit as much as 9 billion barrels of crude oil.
Meanwhile, a report from the University of London College warns that the oil industry needs to shrink by 3% annually by 2050 to achieve the 1.5-degree Celsius goal of the Paris Agreement. According to researchers led by environmental and energy economist Dan Welby, 60 percent of the world’s oil reserves and 90 percent of coal reserves must remain in the ground.
Another report, called Carbon Tracking, calls on oil companies to plan for a future where demand is very low. Very low, in fact, if you want to plan a 50 percent lower yield in the coming decades or if you really want to participate in the effort to curb global warming to 1.5 degrees Celsius above pre-industrial times.
“Oil and gas companies are competing for success in tackling global climate change,” said Mike Coffin, head of Carbon Tracker Oil, Gas and Minerals. He could not have put it better, and while the needs of the oil and gas industry are not in conflict with many climate change efforts, there are more than one reason for this. Related – The two top commodities you should look for in a short time
Consider another recent news report. Inbridge Canada, the largest oil export terminal in the United States, has been renamed the Enbridge Inglis Energy Center (EEC) in Texas Corpus Christi, Texas.
“The EEC makes it one of the most competitive export facilities in the world, combined with its high value outside port, low cost, long-term supply, combined with VLC capacity and fast loading rates,” said the bridge.
The agreement comes at a time when the United States is working at a crazy rate to capture climate change in Europe, and this haste is largely unsuitable for the oil industry. And still, Enbridge is making a big bet on the continued demand for US oil around the world.
The reason is the demand for fuel.
The oil boom, which has plunged the world into power over the past year, has plunged big oil companies and many small companies into retaliation. Now these predictions seem premature.
It is because of this demand that Big Oil, one of the world’s most incomparable low-carbon oil and gas projects, is at risk. Because this low-carbon world is not so sure, even with all the laws and trillions of property managers.
Last week’s record: High gas prices and low wind speeds, an unpleasant surprise for the UK grid, forced ESO to burn down a coal mine. The plant’s energy supply was less than 3 percent, but the reality is that one of the world’s largest emissions was so expensive that greenhouse gases were too low and the green wind was too short, so it had to be used for coal. Due to the weather. Related: Iraq finds new investments in growing oil industry
Meanwhile, rising electricity bills have led to protests in parts of Europe with similar record high gas prices and low wind speeds. Along with gas, many LNGGs. This is due to the combination of unusual events, including a long winter in Asia and a boom in economic activity, which has been a source of controversy. With the wind, it is the weather. Big oil will continue to trade as usual, keeping such differences between energy demand and supply.
France’s Energy has announced a $ 27 billion investment in Iraq over the next 15 years, earlier this month. The money will be used to increase oil recovery in many southern areas, use natural gas for local power generation, and build solar farms. Some might call it the green wash. Other people call it the strong cold reality in which they seek power, and consistently, finding it on a secure basis condemns the imprint of emissions.
By Irina Slav for Oilprice.com
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