American oil boom vs concentration on renewable energies in Europe? Big Oil's gap widens – in words

NEW YORK / LONDON (Reuters) – Exxon and Chevron bragged to investors this week about growth in U.S. oil production, illustrating how the gap has widened – at least in words – American oil and gas companies and their European rivals in efforts to transition to clean energy and fight climate change.

World production of crude oil and natural gas has reached a record level, supported by sharp increases in recent years in the United States, Brazil and other countries. At the same time, a growing climate movement is putting pressure on governments and businesses to reduce their emissions as the world warms.

This week, U.S. companies Exxon Mobil and Chevron focused their investor outlook on strong growth in oil and gas production, a stark contrast to their European rivals, notably BP and Eni, in Italy, which unveiled last month their plans to reduce their traditional activities and reduce greenhouse gas emissions.

But for the moment, no large European invests more than 10% of its total expenditure in renewable energies. All of the world's major oil companies are still planning investments in the production of new fossil fuels, supported by forecasts of years of increased demand for oil and gas.

"These companies all have very similar business models," said Ben Ratner of the Environmental Defense Fund. "The differences we see now relate largely to what they say."

The industry is facing increasing pressure from investors and climate activists to achieve the 2015 Paris climate goal of limiting global warming to less than 2 degrees Celsius from pre-industrial levels.

Publicly, European companies have expressed their plans to reduce carbon emissions more clearly. BP, Eni, Royal Dutch Shell, Equinor in Norway and Repsol in Spain have all agreed to reshape themselves by increasing spending on renewable energy and setting various ambitions to reduce carbon emissions.

"We have to change and change profoundly because the world is changing rapidly and society's expectations of us," said Bernard Looney, CEO of BP, in his speech on February 12, one week after taking office, where he presented a vision. "Reinvent" BP by reducing carbon emissions and reducing oil and gas production by 2050.

Last week, Italy Eni pledged to cut oil production from 2025 and cut greenhouse gas emissions by 80% and in one of the most ambitious clean-up operations in the sector .

But Exxon CEO Darren Woods, when asked about setting carbon emissions targets on Thursday, said the company was focusing on reducing emissions and would not commit in a "beauty match" with his peers on how his investments appear when considering a broader societal problem. .

Chevron CEO Mike Wirth seemed to question Europeans' strategy. "The question of whether or not there is a path to some of these long-term aspirations," Wirth said this week.

Wirth returned to these remarks at an annual investor conference in New York on Tuesday, noting that although European companies have greater long-term aspirations, Chevron has released a set of target goals. shorter term issues which "are very tangible here and now".

Before 2025, Eni's oil and gas production is also expected to increase by 3.5% per year. And BP has committed to sticking to its short-term financial plans.

(Graphic: go green? Png – here)

Chevron and No. 1 oil company Exxon presented plans this week to dramatically increase production in shale oil basins and around the world. Chevron has promised to return $ 80 billion to shareholders by 2025.

Exxon plans to increase spending this year to $ 33 billion, following plans to "leverage" capital spending.

"The fact remains that Exxon still does not provide investors with any assurance that it has a strategy compatible with the objectives of the Paris Agreement and continues to lag behind its peers" , said Edward Mason, responsible for responsible investments for the Church Commissioners for England, who co – leads climate talks with Exxon.

Chevron does not pursue renewable energy as a stand-alone business, but sees investments in wind and solar that can provide energy for its oil field operations. It set short-term climate targets, saying it would reduce the intensity of greenhouse gases and emissions by 2023.

(Graphic: Carbon emissions of oil majors png – here)