Climate Crisis AM Edition 1.29.24 BP Investors Fight Its Green Efforts
Norway has large operations that drill for rare metals on the ocean floor. China has had a stranglehold on supplying these rare metals used for batteries, catalytic convertors, and components for smartphones and cars. China’s position as a supplier of rare metals is a strategic risk for developed countries. However, climate activities have attacked the decision by Norway’s parliament to open the ocean nearby for this drilling, According to CNBC, “Scientists, however, have warned that the full environmental impacts of deep-sea mining are hard to predict, while environmental campaign groups have slammed the approval of what they call an “extremely destructive” process that sends a “terrible signal” to the rest of the world.” It is another example of how business and environmental interests clash.
How oil companies could lose huge amounts of money–plastics
How “big oil” intends to protect its interests–be like tobacco companies
Some BP investors want it to concentrate on fossil fuels and not green initiatives. These investors believe investments in alternative energy solutions have hurt its bottom line. Among large fossil fuel companies, BP is considered the one that has invested the most in green diversification. According to the FT, “Activist investor Bluebell Capital Partners has called on BP to ditch its commitment to cut oil and gas output as well as other keys parts of its strategy to transform the company into a clean energy provider.” Large oil companies, which have been considered among the world’s most significant polluters, have begun efforted to cut their carbon footprints. Most for these “oil majors” have made only the most modest investments in this direction. Many investors want oil companies to stay in the oil business only. They say that will keep margins high and large dividends in place. If Bluebell wins its battle, it will undermine the transformation of oil companies to alternative energy producers.
Shell Leaves Nigeria
Shell is pulling out of Nigeria, which has the world’s ten largest proven oil reserves. Nigeria’s oil industry does not have the infrastructure, capital, or expertise to capitalize on these assets well. Attacks by local rebels repeatedly hurt Shell’s drilling and production operations. President Bola Tinubu promised that these attacks would drop, but they have not. Richard Bronze, head of geopolitics at London-based Energy Aspects, told Reuters local firms lacked the financial heft of oil majors, which could affect future output. The Nigerian economy will suffer if local drillers cannot replace the Shell production.
“Big Oil” had an extraordinarily profitable year in 2023. Five oil companies made $125 billion. These include BP, Shell, Chevron, ExxonMobil, and Total Energies. The nonprofit Global Witness released the data. One of Global Witness’s leaders, Alice Harrison, told the Mirror, “The oil giants have been bleeding us dry. Now they’re making off with the heist of the century, shovelling their shameful profits to shareholders and choosing climate-wrecking U-turns instead of investing in clean energy. This is greed on an historic scale and governments are letting them get away with it.” This is yet another example of the profit interests of fossil fuel companies coming in conflict with promises to participate with national governments to help prevent the climate change disaster. Green interest groups continue to say oil companies’ intentions are not sincere.
