Big Oil Reality Check
Above photo: From the report.
Assessing Oil and Gas Climate Plans.
As oil and gas companies claim to be part of the solution of the climate crisis, the reality couldn’t be more different. Our new discussion paper analyzes the current climate commitments of eight of the largest integrated oil and fossil gas companies, and reveals that none come close to aligning their actions with the urgent 1.5°C global warming limit as outlined by the Paris Agreement.
This discussion paper measures oil and gas company climate plans against ten minimum criteria, focusing on the ambition, integrity, and ability necessary to implement a just transition and achieve a 1.5°C aligned managed decline of oil and fossil gas. Focusing on the oil majors, BP, Chevron, Eni, Equinor, ExxonMobil, Repsol, Shell, and Total, we find that only one company has committed to cutting oil and gas production over the next decade, and even that pledge (BP’s stated commitment to cut production by 40% by 2030) excludes around a third of the oil and gas it invests in extracting via its major share in oil giant Rosneft. Below is a summary table of these criteria included in the discussion paper.
While the oil majors are responding to mounting public pressure that is rightfully stripping away their social license, we reveal that their responses to this pressure are dominated by empty rhetoric and obfuscation. The oil and gas industry needs to rapidly phase out its extraction-based business model and repair the climate damages it has caused. Governments, investors, and communities should not assume the industry most responsible for causing the climate crisis will do its fair share to solve it. Governments in particular must step in to manage the decline in fossil fuels, by phasing out fossil fuel production and implementing Just Transition measures.