• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The United States produced more crude oil than any nation, at any time.
  • 8 days e-truck insanity
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 8 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 11 days Bankruptcy in the Industry
City A.M

City A.M

CityAM.com is the online presence of City A.M., London's first free daily business newspaper. Both platforms cover financial and business news as well as sport and…

More Info

Premium Content

The Need For Pragmatism In The Net Zero Journey

  • Shell and Exxon Mobil, among other energy companies, express skepticism about the feasibility of achieving net zero by 2050, citing societal resistance to the necessary sacrifices and concerns over the costs.
  • The road to net zero could potentially involve significant financial costs to households, as well as the extensive use of raw materials that many argue should remain in the ground.
  • A more pragmatic approach, balancing the desire for cheap, reliable energy with the drive towards green energy, should be adopted by governments and advocates.
Solar roof

There is something in the air: a pushback against the charge to net zero, come hell or highwater.

Yesterday, Shell said it would ‘stabilise’ its production; Exxon Mobil, separately, said they didn’t think society would bear up to the sacrifices necessary to hit net zero by 2050. Others in government have expressed scepticism about the cost of that process, not least when under-developed nations are unlikely to be in any great hurry to close up the cheap energy production which is a) making them rich and b) powering a vast increase in living standards.

We have written many times in City A.M. that the cost of going green is more significant than people realise, even in an environmental sense. Indeed, in many ways – as Ed Conway, whose book Material World comes out today, has made clear – hitting net zero targets will require a sizable plundering of the raw materials that many believe should stay firmly in the ground. The amount of copper required in today’s generation of wind turbines is no joke. On the financial side, the hit to household budgets and living standards could well be dramatic.

Net zero by 2050 is, of course, the product of political grandstanding. It’s a noble and worthy aim but it’s fundamentally arbitrary. Far better would be for governments, diplomats and campaigners to mirror the pragmatism we are starting to see from the big energy majors, who have dumped the hairshirt and are now being honest about the fact that – despite their desires to go green – society wants cheap reliable energy and it wants it now.

In the UK, the road to a greener future goes through the energy companies and the City of London. The capital is already a European hub for green finance and will remain in pole position for some time. Governments would be better to set aside the net zero cheerleading and instead look realistically at what the energy mix might be in a few years’ time.

By CityAM

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Hugh Williams on June 17 2023 said:
    I do not understand about the concern about carbon dioxide. We are at the end of a long climate cycle. At the end of the last one the sea level was 6 meters higher than now. Now the sea level is rising at the rate of about one foot per 100 years. NASA measured the heat emitted by the earth for years and no greenhouse effect was noted. Scientists calculate that if the CO2 doubles the effect will hardly be noticed. Last century there was a period of cooling which shot down the cause and effect theory.
  • Mamdouh Salameh on June 17 2023 said:
    It is high time that the global environmental lobby, Western governments, the International Energy Agency (IEA) and the UN Intergovernmental Panel on Climate Change (IPCC) start telling people the unvarnished truth that the notions of a global energy transition and net-zero emissions by 2050 are illusions.

    Even a partial energy transition will never succeed without huge contributions from natural gas and to some extent nuclear energy and coal. Moreover, net-zero emissions can never be achieved in 2050 or 2100 or ever.

    There is an emerging pushback that is gaining momentum against the incessant charge to net zero. There is also a growing scepticism about the feasibility, the costs involved and the sacrifices society has to endure to hit net zero by 2050.

    What society and the global economy want is cheap reliable energy and they need it now. Therefore, a more pragmatic approach, balancing the desire for cheap, reliable energy with the drive towards green energy, should be adopted by governments and environmentalists.

    And this pragmatic approach is to reduce carbon emissions from fossil fuels and not the actual use of fossil fuels.

    We are now in an era of energy diversification where renewables have to compete with other energy sources for a share. The higher their share, the less fossil fuels will be used for electricity generation.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
  • Paul Smith on June 17 2023 said:
    "Shell and Exxon Mobil, among other energy companies, express skepticism about the feasibility of achieving net zero by 2050" Funny they should say that considering the $Millions they throw into spreading lies.
    "The road to net zero could potentially involve significant financial costs to households, as well as the extensive use of raw materials that many argue should remain in the ground." So they have a problem extracting minerals that are mined and reused forever as opposed to mining fossil fuels that are burned and turned into toxins and GHGs. Now there's a full lack of sense. And no mention about the cost to NOT switch as quickly as possible.

    "A more pragmatic approach, balancing the desire for cheap, reliable energy with the drive towards green energy, should be adopted by governments and advocates." The more pragmatic approach is to drop oil and gas as fast as possible.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News