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.
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.
Oil Continue to Expand Reserves
Energy Monitor has a graphic demonstrating oils continued focus on expanding existing oil and gas