Despite participating in climate summits like COP27 and the upcoming COP28, major oil and gas companies are facing skepticism over their commitment to transitioning to renewable energies. In 2022, Brazil’s Petrobras was heavily invested in oil exploration, allocating $6.9 billion to oil development projects. Similarly, Algeria’s Sonatrach aimed to become a top five national oil company by 2030, and Abu Dhabi National Oil Co. expanded its gas station network across the UAE and Saudi Arabia.
These companies, including 33 others in the oil and gas sector, attended Egypt’s COP27, promoting the narrative of being part of the renewable energy transition. U.S. Climate Envoy John Kerry and others have cautiously endorsed this stance. However, an Associated Press review raises questions about their actual investment in green technologies, revealing a predominant focus on oil and gas exploration and extraction.
The review finds minimal investment in established green technologies like solar or wind power, with billions still poured into fossil fuel projects. Experts argue that these companies, given their profits and capabilities, should be leading the shift to renewables. Yet, their efforts seem inadequate, with many companies focusing on reducing operational emissions (Scope 1 and 2) but neglecting Scope 3 emissions, which occur when customers use their products.
For instance, Petrobras’s strategic plan shows a stark contrast between its low-carbon investments and its significantly higher spending on crude oil exploration. Equinor, a Norway-based company, has a more substantial focus on renewables and plans to tackle Scope 3 emissions, but it also emphasizes the continued need for oil and gas production.
Companies in developing nations highlight the tension between economic reliance on fossil fuels and the urgent need to address climate change. Uganda National Oil Co., for example, has initiatives for climate resilience but primarily uses renewable energy to decarbonize fossil fuel projects, not to replace them.
Overall, the fossil fuel industry’s approach to the energy transition appears conflicted, with substantial investments in traditional energy sources casting doubt on their commitment to a greener future. This situation poses a challenge as global efforts intensify to limit warming and mitigate the worst impacts of climate change.
Read More: Associated Press
