Energy Policy News
  • Latest
  • Archives
  • Data
  • Webinar
  • Index
Wednesday, February 1, 2023
Log In
No Result
View All Results
  • Natural Gas
  • Oil
  • Power
  • Security
  • Sustainability
Energy Policy News
  • Latest
  • Archives
  • Data
  • Webinar
  • Index
Wednesday, February 1, 2023
Log In
No Result
View All Results
Energy Policy News
No Result
View All Results

Fossil-fuel CEOs strike back with warning on energy transition

Bloomberg News by Bloomberg News
December 8, 2021
in News, Oil
Reading Time: 3 mins read
0
Share on FacebookShare on TwitterShare on LinkedInShare by Email

Buoyed by high oil prices, the bosses of the biggest explorers this week laid out a vision for the energy transition that hinges on more fossil-fuel investment rather than less.

The World Petroleum Congress in Houston, an industry showcase, saw last-minute cancellations due to the omicron variant, but it didn’t stop a steady stream of senior executives from hammering on the same point: the world will need us for years to come, so let’s invest and produce, or risk more economically damaging price spikes or even social unrest.

“A halt in investment in oil and gas is misguided,” OPEC Secretary-General Mohammad Barkindo said in recorded presentation to the gathering on Wednesday. Almost $12 trillion in spending is needed between now and 2025 to ensure adequate crude and gas supplies, without which the world will see “long-term scars on energy security, affecting not only producers but also consumers.”

Volatile commodity prices and growing inflation anxiety are recasting the narrative around climate change, just weeks after world leaders hashed out a lackluster deal at the United Nations Climate Change Conference in Glasgow.

Natural gas shortages in Europe and Asia, surging fuel prices in the U.S. and concerns over power-grid reliability are forcing governments to confront difficult choices around transitioning to low-carbon energy sources.

The contradiction is all too apparent in the U.S., where President Joe Biden asked OPEC and its allies to increase crude production just months after enacting a wave of anti-oil policies at home including canceling the Keystone XL pipeline and floating a fracking ban.

The Biden administration’s plea to OPEC “reveals a fundamental truth that should inform any rationale conversation about the future of energy,” said Chevron CEO Mike Wirth. “Oil and gas continue to play a central role in meeting the world’s energy needs and we play an essential role in delivering them in a lower carbon way.”

$75 Crude

Wirth also called for more “optimism” around the transition away from fossil fuels. “Optimism is the spark of innovation, the catalyst of risk,” he said.

The industry has ample cause for optimism. Even after whipsaw price swings in recent weeks amid omicron’s spread and supply-shortage concerns, international oil prices are up 45% this year at about $75 a barrel. Big Oil is making the most free cash flow since crude traded for more than $100 a barrel seven years ago while the U.S. shale industry is reaping record profits.

Signs posted outside the convention center in downtown Houston claimed for the city the mantle of “energy transition capital of the world.” But a paramount concern for management teams assembled inside was whether the industry is investing enough in new drilling to meet demand and stabilize prices.

“Investment is the greatest challenge the oil industry faces today,” said John Hess, CEO at Hess Corp. “Oil and gas are going to be needed for the next 10 to 20 years and lot of it is going to be needed.”

Grim Warning

Saudi Aramco’s CEO warned of “chaos” unless governments stopped discouraging fossil-fuel investments. The Riyadh-based International Energy Forum called on companies to raise spending to $523 billion a year by the end of this decade to forestall an uncontrolled surge in energy prices and economic unrest.

That message is unlikely to go down well with policymakers and environmentalists pushing for stricter limits on emissions worldwide. But it’s also the new reality as the Northern Hemisphere heads into winter facing the specter of an energy squeeze and record price hikes.

Focusing purely on supply-side actors won’t arrest climate change, Exxon Mobil Corp. CEO Darren Woods said in his opening speech to the conference’s 5,000 attendees.

“Narrowly focusing and taking action on one aspect of the challenge could potentially lead to significant unintended consequences,” Woods said. “The best intentions poorly executed can do more harm than good.”

Emission Targets

American companies including Exxon and Chevron are much more focused on cleaning up their own emissions, so-called Scope 1 and 2, rather than those emanating from the use of their products. In contrast to most of their European peers, the U.S. drillers see those Scope 3 emissions, which represent the largest part of oil and gas pollution, as the responsibility of consumers.

“This is a massive, massive challenge,” said Mark Little, CEO of Calgary-based Suncor Energy Inc.. “And everybody’s trying to solve that on the supply side and the demonization of the producers, but at what point are we going to have the real conversation?”

Tags: 3375natural gasoilOPECWorld Petroleum Congress
Previous Post

Enbridge sees two options for pipelines after contracting failed

Next Post

EPA calls for cutting biofuel-blending quotas retroactively for 2020

Related Posts

FERC logo
Natural Gas

FERC Friday Update: July 1, 2022

July 1, 2022
ENERGY POLICY NEWS
Energy News Alert

Energy Policy News says farewell

July 1, 2022
California’s all-renewable moment shows the future of the power grid
Renewables

Environmental groups protest Southwest Power Pool’s renewables accreditation

June 30, 2022
Next Post
EPA

EPA calls for cutting biofuel-blending quotas retroactively for 2020

Report No. 3403

FERC Friday Update: July 1, 2022

Energy Policy News says farewell

Environmental groups protest Southwest Power Pool’s renewables accreditation

6GW of offshore wind planned with more on the way

Supreme Court curbs EPA’s climate authority in blow to Biden

Offshore wind goals depend on domestic supply

FERC fines Salem Harbor $17M for capacity market fraud

G-7 leaders favor LNG investment in U-turn due to energy crisis

DC circuit court upholds Mountain Valley Southgate expansion

Natural gas industry supports NOPR to streamline rate filings

MVP requests extra time to complete project

FERC issues final EIS for Golden Pass project

  • About
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Help Center

 Manage Cookie Consent

Follow Us

© 2022 Royal Media - Energy Policy News, formerly Foster Energy Report

No Result
View All Results
  • Latest
  • Archives
  • Data
  • Webinars
  • Index
  • SUBSCRIBE
  • Login

© 2022 Royal Media - Energy Policy News, formerly Foster Energy Report

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Effective July 1, 2022 Energy Policy News will be discontinued.

After a year of guiding readers to better understanding and awareness around the key policy issues that can make or break energy projects and growth initiatives, we made the difficult decision to shut down our publication.

We are proud of the remarkable coverage provided by our team and want to thank all our customers for your support over the past year.

Sincerely,
The Energy Policy News Team

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gat_gtag_UA_84821447_11 minuteSet by Google to distinguish users.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
Save & Accept
Powered by CookieYes Logo
Go to mobile version