Amid Record Temperatures, Big Oil Abandons Climate Pledges

What's the story?

• Despite major oil corporations' commitments to cut oil production, they have quietly abandoned their pledges to prioritize shareholders. 
• Previously, oil companies relied on misleading marketing schemes, claiming to have commonsense solutions to climate change. Now, as they see record profits — largely due to Russia's invasion of Ukraine — they are ignoring the pledges they've made to the environment to keep those profits rising.

Corporations scale back on commitments

• BP scaled back its goal of lowering emissions by 35% by 2030, aiming for a 20-30% cut instead. BP has also expanded gas drilling projects.
• ExxonMobil quietly withdrew their highly publicized funding for research into algae's potential as a low-carbon fuel alternative. At a conference, ExxonMobil CEO Darren Woods announced that his company would double the amount of oil produced in the U.S. over the next five years.
• In 2021, Shell committed to gradually reducing oil production by 1-2% each year, making modest fossil fuel divestments, and increasing gas production and exports. Instead, Shell prioritized shareholder profits over their previous commitment and will keep oil production steady until 2030. CEO Wael Sawan said:

"The answer cannot be, 'I am going to invest [in clean energy projects] and have poor returns, and that's going to vindicate my conscience.' That's wrong."

• Shell announced it will invest $40 billion in oil and gas production between 2023 and 2035. It will maintain oil production at the current level of 1.4 million barrels daily and will expand its giant liquefied natural gas interests.

What are people saying?

• Dan Cohn, from the Institute for Energy Economics and Financial Analysis, said:

"They have left no doubt that their pledges were deployed for cynical political purposes, only to be ditched when they no longer suited the industry's strategic position."

• Carla Denyer, from the U.K. Green Party, said:

"For Shell to target more fossil fuel production and to increase payouts to shareholders is pure climate vandalism and a sign that fossil fuel companies will not steer us to the greener future we all crave without political leadership from national governments."

• Naomi Oreskes, a professor at Harvard University and expert in corporate denialism, said: 

"The fossil fuel industry has massively profited from selling a dangerous product, and now innocent people and governments across the globe are paying the price for their recklessness." 

• The International Energy Agency (IEA), an energy watchdog, has warned that new oil and gas field development will need to end immediately if we hope to meet net-zero goals by 2050 and prevent a climate catastrophe.
• A paper published in Harvard Environmental Law Review titled "Climate Homicide: Prosecuting Big Oil For Climate Deaths" argued that Big Oil should be charged with homicide for its role in the climate crisis.

 The big picture

• There is tangible proof that the planet is heating up. This year saw the warmest June and the warmest single day on record, July 3. 
• This year has also seen record heat in the U.S. southwest and Mexico, with over 112 people dying in a June heatwave.
• Vermont and New York were under a state of emergency due to flooding last week. Five people have died due to unprecedented flash flooding in Pennsylvania.
• Canada has recorded its worst forest fire season in history, with 3,412 forest fires in 2023.
• Despite this evidence, oil companies insist that there is no alternative to fossil fuels. Days after the hottest day on record, TotalEnergies CEO Patrick Pouyanne said his company would continue to invest heavily in fossil fuels.

How do you feel about Big Oil's broken promises?

— Emma Kansiz

(Photo Credit: Canva)