• 2 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 3 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 4 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 6 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 9 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 9 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

OPEC’s Oil Production Slips In November

OPEC’s Oil Production Slips In November

OPEC’s total oil production dropped…

How Robots And AI Will Transform Mining

How Robots And AI Will Transform Mining

The adoption of drones, robots…

Big Oil Promises $1 Billion In Climate Change Fight

XOM

A host of oil supermajors announced on Friday that they would allocate US$1 billion for fighting climate change over the next ten years. The effort, called the Oil and Gas Climate Initiative, involves BP, Shell, Aramco, Total, Eni, Statoil, Repsol, CNPC, Pemex, and Reliance Industries.

Among the priorities of the initiative are cutting methane emissions from oil and gas pipeline leaks, and accelerating the development of carbon capture, use and storage technology.

The money that the ten companies pledged will be collected in a fund, OGCI Climate Investments, which will partner with businesses from the transport and other energy-intensive industries in a bid to improve energy efficiency in these sectors.

Reuters notes that the OGCI announcement coincides with the official entry into force of the Paris Agreement on climate change, which seeks to mitigate the adverse effects of the changing climate.

The agreement was signed this spring by 171 countries, and its central goal is to keep global temperature increases below 1.5-2 degrees Celsius. It required ratification by at least 55 signatories to come into force.

According to the latest report from the international Panel on Climate Change, in order for the 2-degree target to be achieved, the signatories of the agreement would have to cut emissions by 40-70 percent by 2050. For the more ambitious target of reducing temperature rises to 1.5 degrees, emissions would have to be cut by 70 or even 95 percent.

Related: Surging M&A Activity Suggests The Worst Is Over For Oil

Of course, a lot of these emissions come from the use of fossil fuels, which has led to the rise of a lot of hostility towards energy companies. It was only a matter of time before supermajors began taking notice of these developments and joined the effort in some way.

The amount pledged, however, pales by comparison to the funds that the governments of developed countries have vouched to contribute to the common effort until 2025: US$125 billion.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Herman Goodfellow on November 05 2016 said:
    When investors realize that we can't burn all the know fossil fuel reserves without driving the earth's climate permanently out of control, the value of oil company stocks will follow the trajectory of Peabody Coal. Some will protest like the old guy down the street who said GM, Lucent, and AIG "would come back." He lost his savings, sold his house and moved in with his kids. It's so sad when good people lose all their money by trusting in old companies that paid high dividends twenty years ago and then went bankrupt when things change.
  • Herman Goodfellow on November 05 2016 said:
    Why are the vast majority of new electrical generating plants using wind or solar energy? Could it be that it's cheaper than natural gas? Could it be that the fuel costs are free - free forever? We don't need all this investment in oil. Remember the buggy whip companies of 1900? Big oil will get there. It will take time, but someone else will own the growth technologies of the 2030s, and the surviving oil companies will be trying to market their buggy whips.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News