Why Chevron and Exxon avoid solar and wind | OilPrice.com

The pressure from shareholders and the public is growing as the world’s largest oil companies work to reduce emissions and fight climate change.

Everyone in the Big Oil Club has announced plans to reduce emissions and invest in low-carbon energy over the past 18 months. However, there are significant differences in the way large international oil companies approach the issue of emissions.

They are determined to become all of Europe’s largest oil and gas companies Net-zero Energy trades in 2050 or earlier. Most say that their oil production is already at an all-time high or in the middle of this decade. And all of them, with renewable energy sources – hydrogen, carbon storage and storage, biofuel and charging networks – should be called ‘power companies’ instead of oil companies.

Unlike their European counterparts, the two supermarkets in the United States, Exxon Mobil and Chevron, are not affected by solar and wind power. They focus on renewable fuels and carbon sequestration and storage (CCS), both to cut their own carbon footprint and to partner with regional CCS centers in the most industrialized areas.

European oil majors bet on renewable goods

With net-zero demand, all European oil and gas majors: BP, LL, Total Energy, Ecner, Eni and Reposol – have invested in renewable energy and low-carbon solutions such as hydrogen, CCS and biofuels.

Hydrogen and CCS are still commercially viable, but investment in renewable energy is immediately available to Big Oil.

If they want to, that’s it.

European majors seem to want it, and almost every week they announce bids for projects, investments or joint ventures.

Return on renewable energy in gas and gas is not high, especially in this day and age.

However, the great Europeans see the resilience and renewal of the world’s energy sector as declining carbon dioxide and reducing its own emissions from operations.

example, Ecuador wants to be a big name in the coastal winds and in the Norwegian capital Bid For a wind farm in the main ScotWind lease round earlier this year. He did so BP And Ll l.

BP Corporation Lightsource bp, Solar Manufacturer, Announced This week alone, 25 megawatts of solar power is to be developed by 2025. A.D. Since its inception in 2010, Lightsource has developed 3.8 GW solar projects worldwide.

Lightsource bp has today developed more than 30 projects that have consistently delivered 8 to 10% returns. So when they ask if we have the capacity to deliver the returns we are talking about, the answer cannot be more obvious – yes, it is because we are, ”said BPC Gas and Low Carbon Executive Vice President.

Avoid Exxon, Chevron from the sun and wind

In the Atlantic, American supermarkets Exxon and Chevron are betting on renewable fuels and CCS, but they are moving away from investments in solar and wind power.

Chevron He has no plans Earlier this year, finance chief Pierre Breber said to reduce oil and gas production to invest in solar or wind power.

The shareholder returns They are more important Instead of investing in Chevron in wind and solar power, CEO Mike Wert He told him CNBC in an interview last week.

“These [wind and solar] They are relatively mature technologies. There is a lot of capital available. “Wind and solar returns are really being sold, and we conclude that the management of our company will not be able to create value for shareholders by going to the wind and the sun,” Wert told CNBC.

Chevron Triples low carbon energy investment is planned

A few days before the interview, Chevron says Triple Chevron’s work plans to reduce carbon emissions to $ 10 billion by 2028 in low-carbon businesses, including $ 2 billion.

Chevron Pillars Low Carbon Energy Businesses are developing renewable natural gas production, increasing the production capacity of renewable fuels, increasing hydrogen production and developing regional centers in collaboration with others to increase carbon storage and compensation to 25 million tons per year.

“We look forward to generating strong cash, increasing our profits, repurchasing shares and investing in low-carbon businesses,” Wurt said.

ExxonMobil Low Carbon Solutions – Exxon’s New Business

Exxon, for its part, was created earlier this year New business, ExxonMobil Low Carbon Solutions, first focusing on KCCC to market its low carbon technology portfolio.

The new business is promoting plans for more than 20 new CCS opportunities around the world to enable significant reduction in emissions. Excon Mobile plans to invest $ 3 billion in low-emission solutions by 2025.

We focus on our own emissions, as well as on proprietary projects and business partnerships that account for 80 percent of the global CO2 emissions in the industrial, energy, and commercial sectors. ExxonCEO Darren Woods said In February of this year.

Shares in Exxon have increased significantly since then, and so has Chevron.

U.S. Summermags do not promise any net zero emission targets, but they do accelerate announcements about investments in low-carbon energy that does not include sun or wind.

By Tsvetana Paraskova of Oilprice.com

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