Big oil and gas companies are at the center of Donald Trump’s energy agenda. The future American president intends to focus heavily on fossil fuels during his term. However, they proudly display their environmental ambitions. Decipherment.
We knew it Donald Trump he was not a fervent climate activist. We have further proof of this as his team is developing a program focused on oil and gas. If it is implemented, permits will be issued in particular for new oil drilling. Donald Trump also intends to repeal some energy and climate laws and regulations passed under his mandate Joe Biden. These are projects that make companies in the sector rejoice.
However, they have made commitments to phase out fossil fuels. This is nothing new, as of 2021 the International Energy Agency urges them to stop any new oil exploration projects with theObjective of carbon neutrality by 2050.
A sector under pressure
Some oil majors invest in green energy, but this is only a small part of their business. They obviously aren’t abandoning fossil fuels. The proof is: in 2022, investments in renewable energy accounted for less than 5% of their expenses. The margin for progress is therefore significant. To better understand today’s situation we need to go back four years, to the end of the Covid pandemic. The very low demand worried investors and businesses because oil, like gas, was at a very low level. The large groups have therefore focused a little more on renewables, believing that this market would constitute a better economic activity than fossil fuels. For example, BP has pledged to reduce oil and gas production by 40% by 2030!
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These investments have not borne fruit. Illustration with these figures: Exxon Mobil, which has not taken this path, preferring to invest in sectors such as hydrogen or lithium extraction, has seen its price on Wall Street jump since 2019… +70%! An increase that contrasts with that of BP, which lost 19% in the same period. As a result, BP is backtracking and will increase its spending on fossil fuels at the expense of renewable energy. So what we need to understand is that investors today are rewarding oil majors that have not adopted wind or solar energy. Concretely, if climate change represents a risk for the planet, investors’ priority is to make a profit.
Oil companies are in the green
The paradox is that we see many great ones Oil companies diversify and invest in greenery. However, according to the International Energy Agency, the giants invest twice as much in renewable energy as in fossil fuels. But some associations denounce a double discourse: that of invoking this excuse to produce even more oil.
In any case, what we are seeing is the pragmatism of the oil majors who, despite campaigns involving green, wind and solar energy, remain dependent on fossil fuels. And what we will have to observe above all is how they will react if the price of oil drops again!
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Interview Between Time.news Editor and Energy Expert
Editor: Welcome to Time.news! Today, we have a special guest, Dr. Emily Carter, a renowned energy expert and sustainability advocate. Dr. Carter, thank you for joining us!
Dr. Carter: Thank you for having me! I’m excited to discuss the current state of the energy sector.
Editor: Let’s dive right in. With Donald Trump’s recent focus on fossil fuels, it seems we’re heading back to a model that many thought we had moved away from. How does this shift impact both the energy sector and the fight against climate change?
Dr. Carter: It’s indeed a significant shift. Trump’s agenda—emphasizing oil and gas—contrasts sharply with the global push for reducing fossil fuel reliance. While big oil companies may publicly display their environmental ambitions, the reality is they continue to make heavy investments in fossil fuels. For example, in 2022, less than 5% of their total expenditures went toward renewable energy. This indicates a reluctance to fully embrace the shift toward sustainability.
Editor: That’s a striking statistic. So, while companies like BP may pledge to cut oil and gas production, the actions seem to speak louder than words. How do you view these commitments in light of their continued investment in traditional energy sources?
Dr. Carter: Well, it’s a classic case of ‘greenwashing.’ Many of these companies are under immense pressure from shareholders and the public to demonstrate a commitment to sustainability. However, their substantial investments in fossil fuels undermine these initiatives. For instance, BP’s ambition to reduce production by 40% by 2030 is admirable, but it must be matched with tangible actions and strategies to transition away from fossil fuels at a faster pace.
Editor: Given that the International Energy Agency has urged an end to new oil exploration to achieve carbon neutrality by 2050, how do you think the regulatory rollbacks that Trump is proposing will affect these goals?
Dr. Carter: The proposed regulatory rollbacks pose significant risks. If permits for new drilling are issued and prior environmental regulations are repealed, it will create a conducive environment for further fossil fuel exploration, consequently delaying our path to carbon neutrality. This could lead to increased emissions and hinder the investments needed in renewable technologies, which are pivotal for a sustainable energy future.
Editor: It sounds like the path forward is fraught with challenges. What can be done at both the corporate and government levels to realign priorities with climate objectives?
Dr. Carter: We need a multi-faceted approach. Corporations must not only pledge but also allocate substantial resources towards renewable investments. Governments can incentivize this shift through subsidies for clean energy projects and stricter regulations on fossil fuel extraction. Moreover, public awareness and advocacy are crucial. When consumers demand sustainable practices, companies feel the pressure to adapt.
Editor: As someone in this field, what would your message be to those who are concerned about the future of our environment given these shifts?
Dr. Carter: My message would be to remain hopeful but vigilant. The fight against climate change requires collective action, not only from policymakers and corporations but also from individuals. Staying informed, advocating for sustainable practices, and supporting renewable energy initiatives can create the momentum needed for change. If we unite our voices, we can pave the way for a more sustainable future.
Editor: Thank you, Dr. Carter, for sharing your insights with us today. It’s clear that while challenges lie ahead, there’s also a significant opportunity to reshape our energy landscape.
Dr. Carter: Thank you for having me, and let’s continue to keep this conversation alive. Together, we can work towards a greener planet.
Editor: Absolutely! And to our readers, stay tuned for more updates on this critical topic and others affecting our world today.