Although the World Bank has said it will stop financing new oil and gas projects in 2019, oil and gas companies themselves are still planning to grow in these areas wherever they can. While the UK is banning the sale of new petrol and diesel cars by 2040, Shell is planning to increase its number of petrol stations by a quarter by 2025, mostly in China, India, Indonesia, Russia and Mexico.
In public, companies may be vocal about their support for the Paris agreement, but some suspect that that's largely because switching from high-carbon coal to lower-carbon gas has been touted as part of the short-term answer, and gas is a big part of these companies portfolios. Increasingly though, this is shale gas, obtained by fracking.
In private, these same companies are lobbying against public policy to combat climate change. Exxon, Shell, BP, Chevron and ConocoPhillips (from which Phillips 66 spun off) are all members of the International Association of Oil and Gas Producers (IOGP), one of a number of trade associations that pressured the EU for “the removal or phasing out of renewable energy and energy efficiency targets, and of individual national support schemes for renewables”, according to a 2015 report.
Shell and BP are members of the Oil and Gas Climate Initiative (OGCI), which says it “aims to lead the industry response to climate change”. However, almost half of its billion-dollar fund is going towards controversial carbon capture technology, and none towards development of solar, wind, or any other renewable energy technology.
Carbon Intensity
Oil from tar sands and LNG (liquefied natural gas) have emissions intensities two to three times greater than conventional oil or gas production.
Which companies are most involved in these high carbon intensity energy sources?
Petrol companies and involvement in tar sands
Company |
Tar Sands Reserves
(millions of barrels)
|
North American LNG export
(Proposed or existing attributablebillion cubic feet per day)
|
Exxon |
4664.8 |
4.97 |
BP |
1267.95 |
BP is also involved but is not in the top 25 companies |
Chevron |
1080.12 |
Chevron is also involved but is not in the top 25 companies |
Shell |
540.06 |
1.46 |
Phillips 66 |
Phillips 66 is also involved but is not in the top 25 companies |
|
Climate denial and deception
Exxon’s long and deep involvement in climate misinformation and lies is well known. Over the past few decades it has given around $35 million to dozens of right wing think tanks that have pumped out huge amounts of climate denier nonsense. Greenpeace created the website ExxonSecrets to keep track of all of the donations and the links between the myriad different organisations. What proportion of the garbage on the Internet on the subject was paid for by the company is impossible to tell.
It has also funded US politicians who don’t believe in the science. 18 of the 22 senators who sent a letter to President Trump urging him to abandon the Paris agreement collectively received $371,000 from ExxonMobil between 2011 and 2016.
Having repeatedly denied funding climate denial, in 2007 Exxon admitted that, yes, it had been doing it, but that it would stop. But it didn’t. While its role has subsequently been somewhat overshadowed by the Kochs, who have taken over as the High Priests of Climate Lies, the evidence suggests that it is still involved.
What has recently made the story morally (and possibly legally) worse is that documents have come to light that have demonstrated that Exxon has internally been accepting climate science for decades. In other words, it hasn’t even been a matter of self-deception, it has been a matter of conscious lying.
In 2016 the Union of Concerned Scientists rated all of the major oil companies on their levels of climate deception, disclosure and action. A summary of their ratings can be seen in the box below (Phillips 66 was not rated)
Petrol companies and climate position
|
Shell |
BP |
Chevron |
EXxonMobil |
|
Renouncing disinformation e.g:
- Accuracy of own statements
- Not being a member of industry groups spreading disinformation
|
Fair |
Poor |
Egregious |
Egregious |
|
Planning for carbon-free world e.g:
- Using internal carbon price in investment decisions
- Disclosing emissions and investments
- Having emission reduction targets
|
Fair |
Poor |
Poor |
Poor |
|
Supporting US climate mitigation policies |
Fair |
Good |
Fair |
Fair |
|
Disclosing climate risks to shareholders |
Poor |
Fair |
Fair |
Poor |
|
Climate change and human rights
In March 2018 the Philippine Human Rights Commission held the first public hearing in its inquiry into the responsibility of the “carbon majors” for human rights violations resulting from the impacts of climate change. Philippine communities and civil society groups began this process in 2015, after a typhoon killed over 6000 people in the Philippines in 2013.
They used calculations which showed that Exxon, Chevron, ConocoPhillips, Shell, and BP among others shared a significant amount of responsibility for carbon emissions, and used science which linked those emissions to natural disasters such as typhoons.
Investments in renewables
Shell is investing $2 billion annually in renewables, with a stated goal to cut its carbon emissions by 20% by 2035, and 50% by 2050. This is the highest renewable investment of all the oil companies, but it is still a low proportion of its $25-30 billion total annual investment.
Exxon is reported to be spending $1 billion per year researching, developing and deploying low-carbon technologies.
BP pulled out of renewables dramatically after having branded itself as “Beyond Petroleum” and made a lot of noise about its renewable investments in the early years of this century. It is now creeping back in slightly, but not much: in 2018, it announced that out of its $15 to $17 billion annual investment, about $0.5 billion will be invested in low-carbon technology.
Chevron is another one who is getting out rather than getting in. In 2014, it began reducing its investment in renewables. It wasn’t possible to get figures for what it invests now.
On Phillips 66 it was not possible to get information. As oil companies usually broadcast major renewable investments, it is likely that they are low.