Saturday, March 25, 2023
  • Donate
  • Newsletter
  • ru_RUРусский
  • en_USEnglish
Russian Free Press
  • Home
  • All news
  • Russia
  • Ukraine
  • World
  • Tags
    • Navalny
    • Arrests and Attacks
    • Court
    • Kazakhstan
    • Coronavirus
    • Election 2021
    • Almaty
    • Putin
    • USA
    • Murders
    • Death
    • Rape
    • Germany
  • Special Projects
    • Stories
    • One year after
No Result
View All Result
Russian Free Press

Russia has undermined the faith of Western companies in the global transition to green technologies

February 9, 2023
in Daily News
Share on FacebookShare on Twitter

The energy crisis provoked by Russia forced the largest Western oil and gas companies to reconsider their attitude towards "green technologies" and the energy transition. Now oil majors are postponing global green projects to a later date, and investments in expanding current oil and gas production are coming to the fore. This is reported by Bloomberg, which analyzed the strategic plans and reports of companies.

Western companies were forced to change their rhetoric from “green” to traditional by a record-breaking year for energy companies. American Exxon Mobil Corp. and Chevron Corp have already announced a return to their roots and intention to increase investments in oil and gas production. European majors such as Shell, BP and TotalEnergies follow their example, although a year ago almost all of these companies announced their large-scale restructuring in favor of carbon-neutral work.

British BP CEO Bernard Looney acknowledged that oil demand in 2023 will exceed pre-pandemic 2019 levels, although in 2020 he also assumed that the peak of oil demand has passed and will probably never return to such levels. Against this background, BP has reduced the ambition of its own emission reduction targets and increased its forecast for the production of classical hydrocarbons. Shell directly announced the reduction of investments in "green energy", while increasing investments in gas production. TotalEnergies also announced an increase in the capacity of its gas division, focusing on liquefied natural gas (LNG) as well.

The decisions of majors are significantly influenced by ordinary shareholders of companies who, in pursuit of profit, expect companies to maximize income, including through the buyback of shares from the market (buyback - companies thus increase the value of shares and allow shareholders to earn). Chevron alone promised shareholders about $75 billion in buybacks. Minority shareholders also play an active role, for example, Dan Loeb's Third Point fund acquired a significant stake in Shell back in 2021 and began to pressure the company to refocus on oil.

The oil and gas giants do not completely abandon the "green agenda", but they are changing directions. If earlier the majors looked towards low-margin sectors, such as electricity generation using wind energy, now they are interested in the creation of networks of electric filling stations, as well as the production of biofuels - sectors that are cheaper and closer to traditional energy in terms of implementation and costs.

The abandonment of large-scale "green" projects is already causing concern among research companies and environmentalists. They suspect that a paradigm shift could lead to an accelerated impact on the environment, fail to meet emission reduction targets, and ultimately lead to a significant worsening of the situation caused by global warming. But for investors, analysts say, this is a good sign, as European and American companies will be able to achieve new records in profits against the backdrop of Russia's reduced role in world markets.

Read also

A tornado destroyed a city in Mississippi. 23 people died

March 25, 2023

Putin announced the construction of a storage facility for tactical nuclear weapons in Belarus

March 25, 2023

AGN “Moskva”: A criminal case was opened against economist Konstantin Sonin about “fakes” about the army

March 25, 2023

KP: In Novosibirsk, a teenager died trying to escape from an orphanage through a window. He didn’t call an ambulance for several hours.

March 25, 2023

In the Rostov region, a series will be filmed about a HSE student who ends up in a war in Ukraine and “rethinks” what is happening

March 25, 2023

Ukraine not yet ready to launch counteroffensive due to lack of weapons and ammunition – Zelensky

March 25, 2023

RECOMMENDED NEWS

Pentagon: Russia lost more than 100 thousand soldiers in the war, wounded and killed

5 months ago

“Putin is a psychopath with signs of a sadist, he is provoked by weakness.” Psychiatrist James Fallon on how the West can prevent nuclear war

8 months ago

“I know Ilya as an honest person whose soul hurts for Russia.” Shevchuk sent a personal guarantee for Yashin to the court

7 months ago

Garry Kasparov opened the fourth meeting of participants…

4 months ago

Newsletter

Be the first to get the news in the Telegram newsletter!

  • About
  • Contact
  • Privacy
  • Cookie
  • Terms
  • Donate
  • Advertise
  • Sitemap
contact@russianfreepress.com

© 2022 Russian Free Press - Honest news about Russia and the whole world.

No Result
View All Result
  • Home
  • All news
  • Russia
  • Ukraine
  • World
  • Tags
    • Navalny
    • Arrests and Attacks
    • Court
    • Kazakhstan
    • Coronavirus
    • Election 2021
    • Almaty
    • Putin
    • USA
    • Murders
    • Death
    • Rape
    • Germany
  • Special Projects
    • Stories
    • One year after

© 2022 Russian Free Press - Honest news about Russia and the whole world.

en_USEnglish
ru_RUРусский en_USEnglish