Oil Companies Walk Away From Climate Crisis
Big Oil executives have started to taper off the rhetoric that their companies can be climate change leaders. Under unrelenting pressure from scientists, the government, and much of the public, they have spoken out against greenhouse gas emissions. Each has put billions of dollars into renewable energy, and most have chased high ESG ratings. Each also has an extensive PR campaign to promote their newfound green credentials. Recently, that has changed. Oil executives have turned to comments about how much the world needs their products and that renewable energy will never replace oil and gas.
More Oil –Shale Becomes Bigger
Water –The State That Needs It Least
In a story titled, “Oil executives talk down rapid shift to green energy as profits boom,” the FT reports about a meeting of energy management in Houston…
But industry leaders argue consumers are unwilling to pay the costs associated with a rapid shift to wind and solar energy. Booming construction of power-hungry artificial intelligence data centres, population increases and sweeping electrification mean increases in all forms of energy, except coal, are needed to meet demand, they said.
Unfortunately, this is not entirely untrue. Capital available for wind and solar has become expensive because of the time it takes to get them to market and the fact that progress has been especially slow in the case of wind energy.
Trouble With Wind And Solar
Another primary source of energy, water-powered turbines, has been undermined by drought due to climate change. Lake Mead, for example, has water levels low enough that, if they drop much further, the Hoover Dam will lose its capacity to produce electricity. The dam can power as many as 700,000 homes.
In December, the US produced more crude oil than any country has produced in a single month in history. Big Oil’s argument today is that it can produce what alternative energy cannot.
While the pro-crude statements by large oil companies may have some strength, their activities still cripple the environment hugely at the same time.
