Page 13 - FSU OGM Week 22 2021

FSUOGM NEWS IN BRIEF FSUOGM

Shell ruling leaves more Saudi Aramco, listed on the Saudi stock
RUSSIA targets to limit global warming.
Belarus to have no space for OPEC, Russia exchange but majority state-owned, is not
under the same sort of pressure to cut its
problems with Russian oil Last week, climate activists scored big carbon emissions, although the kingdom's
rulers aim to sharply increase the country's
against Western oil majors Royal Dutch
supplies Shell, ExxonMobil and Chevron, leaving use of renewables.
those companies under pressure to cut
Gazprom expects demand for natural gas
Belarusian President Alexander Lukashenko carbon emissions faster. Other global oil to grow in the coming decades and for it to
expects no problems with supplies of giants were quick to seize on the events, as play a bigger role in energy consumption
Russian oil to the country in light of it means potentially more business for the than renewable sources and hydrogen.
Western sanctions as he reached an likes of Russia's Gazprom and Rosneft, the Western oil majors control around 15%
agreement with Moscow, state news agency Abu Dhabi National Oil Company (Adnoc), of global output, while OPEC and Russia
SB Belarus Segodnya reported on June 1 and Saudi Arabia’s national oil company have a share of around 40%. That share
citing Lukashenko. Saudi Aramco, as well as other members of has been relatively stable in the last few
The governments of the two countries the Saudi-led OPEC. decades as rising demand was met with new
have conducted extensive work on oil "Oil and gas demand is far from producers such as smaller private U.S. shale
supplies following introduction of Western peaking and supplies will be needed, but firms, which today face similar climate-
sanctions against Minsk. “At least, we international oil companies will not be related pressures.
agreed that there will be no issues with oil allowed to invest in this environment, Since 1990, global oil consumption has
supplies. It is beneficial for Russia. We can meaning national oil companies have to step grown to 100 million barrels per day from
refine 22mn tonnes of oil or even more,” in," said Amrita Sen from Energy Aspects 65 million bpd, with Asia providing the
Lukashenko said as quoted by the agency. consultancy. lion's share of growth.
There will be no deficit in any oil Climate activists scored a major victory Countries such as China and India have
products in Russia as Belarus has enough with a Dutch court ruling requiring Royal made no pledges to reduce oil consumption,
capacities to cover any possible deficit, he Dutch Shell to drastically cut emissions, which on a per capita basis is still a
said. Russian President Vladimir Putin said which in effect means cutting oil and gas fraction of the levels in the West. China
as cited by Lukashenko that there will be output. The company will appeal. will rely heavily on gas to cut its huge coal
no problems with oil delivery to Belarusian The same day, the top two United consumption.
refineries, so there will be no problems with States oil companies, Exxon Mobil Corp The International Energy Agency (IEA),
exports of Belarusian oil products to Russia and Chevron Corp, both lost battles with which looks after the energy policies of the
or external market. shareholders who accused them of dragging West, issued a stark appeal last month to the
Lukashenko also said that Putin and their feet on climate change. world to essentially scrap all new oil and gas
he discussed the price of Russian gas for "It looks like the West will have to rely developments. But it gave no clear formula
Belarus. more on what it calls "hostile regimes" for on how to reduce demand.
“This issue has not been solved yet. In its supply," joked a high-level executive Despite pressure from activists, investors
this regard, the president promised me that from Russia's Gazprom oil and gas group, and banks to cut emissions, Western oil
they would get together and think about the referring to energy companies around the majors are also tasked with maintaining
way of helping Belarus with the gas price in world owned completely or mostly by the high dividends amid heavy debt. Dividends
this situation. I have a feeling that we will state. from oil companies represent significant
be able to buy gas from Russia next year Saudi Aramco, Adnoc and Gazprom all contributions to pension funds.
at a price no higher than this year’s price,” declined to comment. Oil major Rosneft, "It is vital that the global oil industry
Lukashenko said. in which the Russian state has the biggest aligns its production to the Paris goals.
Another state news agency BelTA stake, also declined to comment. But that must be done in step with policy,
reported citing Lukashenko that Putin and A senior Saudi Aramco staffer said the changes to the demand side, and the
he also agreed to minimize the losses of court ruling would make it easier for OPEC rebuilding of the world’s energy system,"
Belarusian oil refineries from the Russian to ramp up production. said Nick Stansbury from Legal & General,
oil tax maneuver. "It is great for Aramco," the staffer said. which manages 1.3 trillion pounds ($1.8
“We found resolutions over the oil tax Western oil majors such as Shell have trillion) in assets on behalf of savers,
maneuver. I mean, we didn’t find them, our dramatically expanded in the last 50 years, retirees and institutions.
governments did, we just coordinated and as the West sought to cut its reliance on "Forcing one company to do so in the
approved them. We will continue having energy from the Middle East and Russia. courts may – if it is effective at all – only
dialogues and agreements,” Lukashenko said Those same Western energy majors, result in higher prices and foregone profits,"
as quoted by BelTA. including BP and Total, have set out plans he said. Legal & General, one of the world's
to sharply reduce emissions by 2050. But largest fund managers, holds assets in most
they face growing pressure from investors oil majors.
to do more to meet United Nations-backed Climate lawsuits have been filed in 52

Week 22 02•June•2021 www. NEWSBASE .com P13