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BP and Shell, among others have scaled back promises to cut back oil and gas production and have signalled they would be there to provide the world with fossil fuel energy as long as it needs it.
This is despite all European majors continuing to target net-zero emissions by 2050.
As the world still depends on fossil fuels for more than 80 per cent of its primary energy consumption, Russia’s invasion of Ukraine has created a huge energy gap as global oil and gas majors have changed their tune on medium to long-term strategies.
Because the world still depends on fossil fuels for more than 80 per cent of its primary energy consumption, it’s not outrageous from a business perspective for companies with core oil and gas business to double down on continued extraction of oil and gas.
They are hard pressed to reward shareholders in a cyclical industry with frequent booms and busts. But this decade, Big Oil has also been hard pressed by the ESG movement from investors to commit to reducing emissions faster, including Scope 3 emissions from the products they sell.
Following last year’s energy crisis in the wake of the Russian invasion of Ukraine and upended global oil and gas flows, international majors have pivoted back to oil and gas production, saying that fossil fuels will continue to be critical for the energy system until it matures enough to run mostly on low-carbon energy.
