• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 8 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 14 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 8 hours Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 3 days Are you aware of Oil Price short videos on our energy topics?
  • 3 days NordStream2
  • 2 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 3 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 days "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT

Breaking News:

California Gasoline Prices Are Spiking

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

JP Morgan: Big Oil’s Spend To Meet Climate Goals Will Be ‘Monumental’

If Europe’s eight largest oil companies want to meet the climate and carbon-reducing goals they have set, their spending on new, low-carbon energies must double by 2020, and then double again within five years, with total spending seen as ‘monumental’, according to JP Morgan.

Currently, Europe’s big oil—the eight largest companies Shell, Total, BP, Eni, Equinor, Repsol, OMV, and Galp—spend on average around 5 percent of their capital expenditures on “new energies,” JP Morgan said in a report, carried by Bloomberg.

According to the JP Morgan analysis on company statements and best practices in the industry, if Europe’s Big Oil were to meet climate goals and don’t lose credibility that they work toward their goals, they would need to raise the share of the ‘new energy’ spending to 9 percent of capital budgets by 2020, and to 17 percent of capex by 2025.

“If they’re really going to lower their carbon footprint, the dollars that they have to spend are monumental,” Chrystian Malek, head of European, Middle East and African oil and gas research at JP Morgan, told Bloomberg in an interview, discussing the analysis.

Some companies, like Repsol and Equinor, are in a relatively good position to face that challenge, according to JP Morgan. Related: The Downside For Oil Is Limited

Shell—which plans to more than double its new energies capex to US$4.5 billion annually in 2025 from US$1 billion-US$2 billion currently—can afford to channel capital to low-carbon energy and systems, JP Morgan’s analysis shows.

But others, like Total for example, can’t afford to take spending out of the oil and gas division and re-route it to new energies, so if it wants to meet its climate targets, it needs to boost its overall capital expenditure, according to JP Morgan. If, however, Total and companies in a similar position bump up their total capital spending, shareholder returns may suffer.

Yet, investors have grown increasingly climate goal-sensitive, and if companies opt to “kick the can down the road,” they could face unhappy shareholders at annual meetings, JP Morgan’s Malek told Bloomberg.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Tom Blazek on September 13 2018 said:
    When you are producing and selling high carbon fuels, it seems like “window dressing” to just do it more efficiently. Why not lower the carbon in the fuels themselves by blending in more ethanol? That would make a big difference in total carbon emissions. Ethanol’s carbon footprint is about 55% that of gasoline. The fuels themselves are the real problem, not the manufacturing process. How long are we going to just window dress?
  • Frank on September 13 2018 said:
    These highly leveraged companies whose entire asset sheets will go to zero within 3 or 4 years? These are the companies we think are going to have billions to invest in sustainable energy?

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