• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 10 hours EU has already lost the Trump vs. EU Trade War
  • 2 days Science: Only correct if it fits the popular narrative
  • 3 hours Impeachment S**te
  • 2 days Crazy Stories From Round The World
  • 13 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 18 hours Everything You Need To Know About Trump
  • 10 hours 55.00 WTI
  • 12 hours Water, Trump, and Israel’s National Security
  • 1 day IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 2 days Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 10 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 2 hours Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 2 days Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 days ‘If it saves a life’: Power cut to 1.5 million Californians
  • 18 hours Last I Checked
Alt Text

The Top 5 Ways We Use Oil & Gas

Oil & gas products are…

Alt Text

Aramco Reveals Its Valuation

Aramco will sell the first…

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




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play