Page 11 - Gi_November2019

international news

OIL AND GAS COMPANIES INVESTING £40BN IN PROJECTS

THAT ‘UNDERMINE’ FIGHT AGAINST CLIMATE CHANGE

natural resources analyst at Barclays
and co-author of the report.
Scientists have warned a 1.5°C
temperature rise is the tipping point at
which climate impacts, such as sea-level
rise, natural disasters, forced migration,
failed harvests and deadly heatwaves,
will rapidly start to intensify.
While some companies including
Shell, BP, Total and Equinor have
increased spending on renewable
energy and introduced carbon-
reduction targets, the sector says it
needs to continue investing in oil and
gas projects to meet future demand as
Asian economies expand.
Darren Woods, Exxon’s Chief Executive,
insisted the world’s rapidly growing
THE OIL AND GAS GIANTS INSIST THEY ARE demand for energy would not be met by
COMMITTED TO THE PARIS GOALS renewables alone. He cited International
Energy Agency (IEA) estimates that
MAJOR OIL AND GAS companies have liquefied natural gas developments, £17 trillion of new investment in
approved £40 billion of projects since last BP’s oilfield expansion in Azerbaijan, energy production is needed by 2040,
year that undermine global efforts to avert and a £1.1 billion deepwater site representing a “compelling investment
a climate crisis, a report has revealed. in Angola involving five major oil case” for fossil fuels.
Fossil fuel giants including Shell, BP companies are among the projects Shell said in a statement it had set out an
and ExxonMobil are investing billions that researchers said would not be “ambition” to halve net carbon emissions
in plans that are incompatible with economically viable if governments by 2050 “in step with society as it moves
the 2015 Paris Agreement, which implemented the agreement. towards meeting the aims of Paris”.
aims to limit global warming to 1.5°C, “Every oil major is betting heavily “As the energy system evolves, so
according to an analysis by the think against a 1.5°C world and investing in is our business, to provide the mix of
tank Carbon Tracker. projects that are contrary to the Paris products that our customers need,”
Shell’s £10.6 billion Canadian goals,” said Andrew Grant, a former a spokesperson added.

SHELL URGES US CONGRESS TO WITHHOLD NORD STREAM 2 SANCTIONS

ROYAL DUTCH SHELL is asking the respectfully urge lawmakers not to DESPITE LEGAL CHALLENGES,
US Congress not to enact sanctions enact these sanctions,” Shell’s Cremers NORD STREAM 2 CONSTRUCTION OF THE
PIPELINE CONTINUES
against the Russia-led Nord Stream said in comments emailed to Reuters.
2 undersea gas pipeline to Germany, Russian gas producer Gazprom leads
said Cederic Cremers, head of Shell’s the project while other participants,
business in Russia. who provide financial support,
A Senate committee passed a bill in include Shell, Germany’s Uniper
July to place sanctions on companies and Wintershall, Austria’s OMV and
and individuals involved in building France’s Engie.
the Nord Stream-2 gas pipeline from OMV has also publicly voiced its
Russia to Germany. support for Nord Stream 2. annexation of Crimea, its relations
The Donald Trump administration The project will double the annual with Ukraine have soured and the
says the project would strengthen capacity of the existing Nord Stream European Commission has stepped up
Moscow’s economic grip on Europe. pipeline to 110 billion cubic meters calls for member states to reduce their
“If the current legislation under and account for more than half of reliance on Russian energy imports.
consideration in the US Congress Russia’s piped gas exports to Europe, The project faces legal challenges
is passed, it will affect all of the allowing it to bypass Ukraine, currently from Europe, which is changing its
companies involved with the project, its main transit route. energy rules, including regulation of
including Shell. We therefore In the wake of Russia’s 2014 Nord Stream 2.

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News.indd 6 17/10/2019 13:45