„In our first report in 2011, Unburnable Carbon: Are the world`s financial markets carrying a carbon bubble? We drew attention to the end of the global carbon budget and the risks associated with the oversupply of fossil fuels. Carbon Tracker has consistently found that most fossil fuels must remain in the soil. But as this new report points out, the companies and governments that license them are still concerned about their expansion,“ said Mark Campanale, founder and chief executive of Carbon Tracker, who said it was too early to say whether Shell`s strategy to reduce oil dependence will pay off in the long run for shareholders. Last year, although shell continued to pay high dividends, it repurchased shares and helped maintain its share price. The move has kept the company`s stock valuation at roughly the level, but it is hardly a viable long-term strategy. In all sectors, companies need to „know who they are in this changing market,“ says Tom Sanzillo, IEEFA`s CFO. „They`re not the profit center they used to be, and they probably never will be.“ HOUSTON – As oil prices fall and concerns about climate change rise, BP, Royal Dutch Shell and other European energy companies are selling oil fields, predicting a drastic reduction in emissions and investing billions in renewable energy. Each of the six integrated European oil and gas companies, which has a Scope 3 emission target, has developed its own ratio, making it difficult to make comparisons. To enable this comparison, TPI has developed a standardized methodology that allows us to reconcile companies` emissions targets according to a common methodology. Chart 2 shows that the pathways for integrated European oil and gas companies are not as ambitious.
„These projects represent an immediate challenge for investors and businesses who want to move towards climate goals,“ the report warned. Equinor`s long-term oil price assumption at USD 80/bbl is the highest of the companies studied here. This is despite the fact that he shares an accountant (Ernst and Young) with Shell, which takes over 60 USD/bbl. Eni maintains an unchanged long-term price assumption of USD 70/bbl. The assumptions of both companies must be put under pressure. „Oil companies don`t do anything that turns into a business,“ says David Keith, a professor of applied physics at Harvard who founded Carbon Engineering. „That`s not how the world works.“ Major U.S. and European oil and gas companies publicly agree that climate change is a threat and that they must play a role in the kind of energy transition the world experienced during the last industrial revolution. But the urgency with which companies want to transform their businesses could not be more different.
It was the latest in a series of similar movements. In recent years, Shell and Exxon and BP have left the American Legislative Exchange Council, a conservative political group, because of their attitude to climate change. In 2014, Shell and other major global oil companies met, in 2017, a consortium of global Fortune 500 companies, including Shell, Total, ExxonMobil and BP, partnered with a handful of green groups to launch the Climate Leadership Council to defend a carbon tax in the United States that reflects the „conservative principles of free markets and restricted government.“ A related lobby group has spent several million dollars promoting the congressional proposal. Critics largely reject these efforts as too little, too late. They question the sincerity of companies and suggest that they could give up their support when it comes to lobbying. And given the scale of the challenge, many say that the time for progressive initiatives has long passed. BP is the standard support for the correction and change strategy. The company has announced that over the next ten years it will increase ten-in-ten
