• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 58 mins The power of propaganda has no boundaries: Which country has larger territory US od China
  • 20 mins Freedom of Speech for Dummies
  • 4 hours Iranian Oil Tanker struck by missiles off Jeddah
  • 39 mins South Korea Unveils Fighter Jet Mock-Up Amid Program Challenges
  • 16 hours Support Held. Back in UGAZ
  • 14 hours Crazy Stories From Round The World
  • 4 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 2 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 3 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 21 hours China's Blueprint For Global Power
  • 20 hours Total SA In Expansion: $600 million For India's Adani Gas
  • 2 hours How The US Quietly Lost The 1st Amendment

Breaking News:

Is This The End Of China’s Gas Boom?

Big Oil Tries To Buy Back Investors

Big Oil Tries To Buy Back Investors

Despite the turbulence in oil…

The Real History Of Fracking: Oil, Bombs And Civil War

The Real History Of Fracking: Oil, Bombs And Civil War

Despite popular belief, fracking is…

Big Oil Might Bet $50B On Potentially Non-Viable Projects: Report

Wattenberg field

Big Oil companies are betting $50 billion on oil and gas projects that would be unviable in a low-carbon world, Carbon Tracker has warned, noting that the approval of these projects suggests the industry is still firmly on a path that diverges from the Paris Agreement goals.

In a report titled “Breaking the Habit – Why none of the large oil companies are ‘Paris-aligned’, and what they need to do to get there”, the climate change think-tank lists several oil and gas projects as examples of Big Oil’s divergent investment strategy for the future. These include the $13-billion LNG Canada project, the $3.6-billion expansion of the Gorgon LNG project, Exxon’s Aspen oil sands project, which will cost $2.6 billion, and the $1.3-billion Zinia 2 deepewater project led by BP, Exxon, Total, and Equinor.

Carbon Tracker says a Paris-compliant world would need a lot less oil and gas, which would make a lot of these projects unviable in such a world. Under a scenario where global warming is arrested at 1.6 degrees Celsius, the energy industry would need an 83-percent lower capex, the think-tank says. Under a 1.7-1.8 degrees scenario, oil and gas capex would be 60 percent lower.

Yet, according to the report, Big Oil is not preparing for a Paris-compliant world, judging by the recent project approvals. While Carbon Tracker is critical of this fact, it seems to be the realistic scenario as some begin to question the chances of the Paris Agreement goals.

Related: Analyst: OPEC’s Cuts Actually Destabilize Oil Market

A recent study, for example, warned China’s Belt and Road initiative alone could compromise the success of the Paris Agreement. The initiative, the Tsinghua Center for Finance and Development says in the study, involves 126 countries, excluding China. These countries together account for 28 percent of emissions from human activity.

"We have a business-as-usual scenario that says if you continue the way you are then even if every other country on the planet -- which includes US, Europe, China and India -- goes on a 2C pathway, this is still going to blow the carbon budget," says Simon Zadek, a fellow at the Tsinghua Center.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bill Simpson on September 08 2019 said:
    A 'low carbon world' begins anytime soon, and it will also be known as, The Great Depression II.
  • Jeffrey Pickett on September 06 2019 said:
    Does China and India building coal fired power plants also fit with the two biggest exemption beneficiaries, etc. of the Paris Accord soak the US taxpayer accord?

Leave a comment

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