Oil and gas investments not feasible under Paris Agreement

According to recent research from the non-profit think tank Carbon Tracker, investments in oil projects that have already been sanctioned would not be possible if governments implement policies in line with the Paris Agreement on climate change. The report identifies oil companies with large market shares who are involved in recently approved projects. The projects include:

Shell’s two liquefied natural gas projects in Canada, worth $6.5bn each,
Shell, Chevron and ExxonMobil’s deep water gas project, Gorgon/Jansz in Australia, worth $3.6bn,
ExxonMobil’s oil sands project, Aspen in Canada, worth $2.6bn,
Eni’s crude oil project, Amoca FFD in Mexico, worth $1.4bn, and
BP, ExxonMobil, Total and Equinor’s deep water project, Zinia 2 in Angola, worth $1.3bn.

None of these projects fall in line with the Paris Agreements, according to Carbon Tracker, though some have already received final investments. The report has identified 18 newly approved oil and gas projects worth a total of $50bn. These projects that have already been sanctioned are predicted by the report to take world temperature increases well past 1.5 degrees Celsius, assuming carbon capture and storage technology does not vastly improve in the short-term.

The oil and gas industry has maintained that continued oil and gas production will be necessary to meet rising energy demand. While companies like BP and Shell have made commitments to reducing carbon emissions and have begun investing in environmentally sustainable technology like solar and carbon capture, the Carbon Tracker report said that these companies spent at least 30% of their investment last year on projects that are not feasible under the Paris Agreement’s restrictions. BP has claimed that its emission and price reduction strategies are in line with the International Energy Agency’s (IEA) forecasts and Paris Agreement, though the analysis from Carbon Tracker was based on three scenarios produced by the IEA and based on the Paris Agreement’s targets.

    Share Story:

Recent Stories