low investment in renewables by oil

Some would see oil companies with $134 billion profits in 2023 investing in renewable energy but the reality is low investment in renewables by oil companies – and in some cases none. They demonstrate no commitment to any targets, let alone the Paris Agreement and continue to invest heavily in fossil fuel.

Spending less than one dollar on renewables for every four on fossil fuels, or even the same amount on both, would put oil majors out of step with the demands of the energy transition, according to research company BloombergNEF.

Low Investment in Renewables by Oil Companies

The NGO Reclaim Finance tracks these numbers in detail. The world’s five largest Western oil majors by revenue – BP, Chevron, ExxonMobil, Shell and TotalEnergies – are planning for a future misaligned with a net-zero pathway, as outlined by the IEA.

All five companies have pledged on paper to reach net zero by 2050. Yet their investment is low to zero.

low investment in renewables by oil companies as reported by Reclaim Finance
Oil major by current and upcoming oil and gas operations. Reserves measured in billions of barrels of oil equivalent (bboe) from https://www.energymonitor.ai/finance/risk-management/exclusive-oil-majors-expansion-little-heed-to-net-zero/

IEA Projections Compared with RMI Projects

The International Energy Agency’s (IEA) Net Zero by 2050 pathway anticipates oil demand declining by 75% by 2050 from 2020 levels, with falling demand leading to the oil price dropping to around $35 per barrel in 2030 and $25 per barrel by 2050.

Bloomberg NEF has its projections.

RMI (previously the Rocky Mountain Institute) state the tipping point is 2 decades sooner.

low investment in renewables by oil companies will see the collapse of these companies
From RMI https://rmi.org/insight/the-energy-transition-narrative/

Oil Continue to Expand Reserves

Energy Monitor has a graphic demonstrating oils continued focus on expanding existing oil and gas

low investment in renewables by oil but continued high investment in fossil fuel