Big Oil companies are betting $50 billion on oil and gas projects. Noting that the approval of these projects suggests the industry is still firmly on a path. The path that diverges from the Paris Agreement goals.
In a report “Breaking the Habit – Why none of the large oil companies are ‘Paris-Align’. What they need to do to get there”.
The climate change think-tank lists several oil and gas projects. This is an example of Big Oil’s divergent investment strategy for the future. These include the $13-billion LNG Canada project, the $3.6-billion expansion of the Gorgon LNG project, Exxon’s Aspen oil sands project, which will cost $2.6 billion, and the $1.3-billion Zinia 2 deep-water project led by BP, Exxon, Total, and Equinor.
Carbon Tracker says a Paris-compliant world would need a lot less oil and gas, which would make a lot of these projects unviable in such a world. Under a scenario where global warming is arrested at 1.6 degrees Celsius, the energy industry would need an 83-percent lower CAPEX, the think-tank says. Under a 1.7-1.8 degrees scenario, oil and gas CAPEX would be 60 percent lower.
Yet, according to the report, it is not preparing for a Paris-compliant world, judging by the recent project approvals. While Carbon Tracker is critical of this fact, it seems to be the realistic scenario as some begin to question the chances of the Paris Agreement goals.
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