{"id":50682,"date":"2020-01-23T19:54:08","date_gmt":"2020-01-24T00:54:08","guid":{"rendered":"https:\/\/olduvai.ca\/?p=50682"},"modified":"2020-01-23T19:54:10","modified_gmt":"2020-01-24T00:54:10","slug":"the-twin-threats-facing-big-oil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=50682","title":{"rendered":"The \u201cTwin Threats\u201d Facing Big Oil"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/The-Twin-Threats-Facing-Big-Oil.html\">The \u201cTwin Threats\u201d Facing Big Oil<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2020-01-21_rbt0mmqouo.jpg\" alt=\"Wolfcamp rig\"\/><\/figure>\n\n\n\n<p>The global oil and gas industry is facing the \u201ctwin threats\u201d of the loss of profitability and the loss of social acceptability as the climate crisis continues to worsen. The industry is not adequately responding to either of those threats, according to a new report from the International Energy Agency (IEA).<\/p>\n\n\n\n<p>\u201cOil and gas companies have been proficient at delivering the fuels that form the bedrock of today\u2019s&nbsp;&nbsp; energy system; the question that they now face is whether they can help deliver climate solutions,\u201d the IEA said.<\/p>\n\n\n\n<p>The report, whose publication was timed to coincide with the World Economic Forum in Davos, critiques the oil industry for not doing enough to plan for the transition. The IEA said that companies are spending only about 1 percent of their capex on anything outside of their core oil and gas strategy. Even the companies doing the most are only spending about 5 percent of their budgets on non-oil and gas investments.<\/p>\n\n\n\n<p>There are some investments here and there into solar, or electric vehicle recharging infrastructure, but by and large the oil majors are doing very little to overhaul their businesses. The top companies only spent&nbsp;<a href=\"https:\/\/www.greentechmedia.com\/articles\/read\/iea-energy-transition-possible-but-more-expensive-without-oil-gas-buy-in\" target=\"_blank\" rel=\"noreferrer noopener\">about $2 billion<\/a>&nbsp;on solar, wind, biofuels and carbon capture last year.<\/p>\n\n\n\n<p>Before even getting to the transition risk due to climate change, the oil industry was already facing questions about profitability. Over the past decade the free cash flow from operations at the five largest oil majors trailed the total sent to shareholders\u00a0<a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Is-This-The-End-For-Big-Oil-Dividends.html\">by about $200 billion<\/a>. In other words, they cannot afford to finance their operations and also keep up obligations to shareholders. Something will have to change.\u00a0<\/p>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The \u201cTwin Threats\u201d Facing Big Oil The global oil and gas industry is facing the \u201ctwin threats\u201d of the loss of profitability and the loss of social acceptability as the climate crisis continues to worsen. The industry is not adequately responding to either of those threats, according to a new report from the International Energy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1053,416,433,6010,1729,23083],"class_list":["post-50682","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-climate-crisis","tag-iea","tag-international-energy-agency","tag-nick-cunningham","tag-oil-and-gas-industry","tag-oil-price-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50682"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50682\/revisions"}],"predecessor-version":[{"id":50683,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50682\/revisions\/50683"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}