Big oil today outlined how it plans to do its bit to help curb warming to two degrees. The announcement comes on the same day the Paris Agreement formally comes intoย force.
Predictably, there remains a considerable gap between the companiesโ commitments and the Paris Agreementโsย goals.
Analysts say that to curb warming to two degrees, companies will have to leave around a third of oil reserves in the ground. So is that the revolutionary decision the companies todayย announced?
No.
Solving Climate With Moreย Gas
Combined, the companies comprising OGCI account for over 20 percent of the worldโs oilย supply.
At the core of these companiesโ climate plan is setting up a $1 billion (ยฃ80m) fund to ramp us gas instead of coal, clean up the industryโs own emissions, invest in carbon capture and storage (CCS) technology, and make cars moreย efficient.
Contrary to media reports leading up to the announcement, none of this money seems to be earmarked forย renewables.
One billion dollars might sound like a lot on the face of it but if you break it down, it comes to an average investment of $9.9m (ยฃ8m) per company per year for aย decade.
And as the Energy and Climate Intelligence Unit points out, these companies have an annual budget of over $300 billion. So itโs just a drop in the bucketย really.
And, more notably, none of those strategies require the world to significantly reduce oilย consumption.
As the announcement reads, the main focus will be on CCS and reducing methane emissions from gas โin order to maximize the climate benefits of natural gas. The OGCI believes that these are areas where the oil and gas industry has meaningful influence and where its collaborative work can have the greatestย impact.โ
Itโs not the first time the OGCI has made this type of announcement. In advance of the landmark Paris climate conference last year, the same 10 CEOs pledged to โplay their partโ in tackling climateย change.
Those plans included – you guessed it – ramping up gas, making the industry more efficient, investing in CCS, and improving the efficiency of roadย vehicles.
So itโs perhaps no surprise that todayโs announcement was met withย scepticism.
Grist said the strategy sounded somewhat like โsweaty, desperate greenwashingโ, though it conceded the companies could genuinely be driven by the existential crisis the industry faces as the worldย decarbonises.
Juliet Philips from investment campaign group ShareAction said: โโUntil initiatives like those announced by the Oil and Gas Climate Initiative are backed up by long-term corporate strategies that are consistent with achieving the Paris Treaty, scepticism of their sincerity isย inevitableโ.
Charlie Satow from local activist group Divest London said: โThe OGCI companies are projected to spend $85 billion into developing new reserves in 2016. Todayโs launch is therefore nothing more than a cynical PR exercise, yet more greenwashing tactics designed to blind us to the simple reality. These companies are the problem, not the solution to climateย injustice.โ
Savingย Face
Industry representatives know theyโre set for some awkward questions over the next two weeks as thousands of delegates descend on Marrakech for the latest round of climate negotiations. Todayโs announcement is an attempt to fire the firstย shots.
This particular roguesโ gallery has an awful lot to do if it is to persuade people that the industry is serious about climate change,ย however.
The OGCI is the latest in a long line of friendly sounding groups to front the industryโs effort to appearย climate-friendly.
As Oil Change Internationalโs profile of OGCI highlights, the group already has an imageย problem.
OGCIโs website was set up by former tobacco-lawyer, Daniela Bara, and its PR is handled by Edelman, which has a history of representing climate deniers and coalย producers.
And thatโs before you even get to the companies OGCIย represents.
Shell has previously been prosecuted for โgreenwashingโ in its advertising. BP has been branded Europeโs โstrongest advocate of dirty energyโ by NGO Influence Map. And Total remains very keen on drilling for oil in ever harder to reachย places.
Todayโs announcement is further evidence that these companies continue to fundamentally deny that their business interests conflict with the Paris Agreementโsย goals.
If the world is going to curb warming to 2 degrees โ or even 1.5 degrees if countries are feeling ambitious โ the oil industry is collectively sitting on a massive carbon bubble. Despite the OGCIโs protestations, todayโs announcement does not suggest the industry is genuinely planning to change its business model to help the world address climateย change.
As Anthony Hobley, CEO of Carbon Tracker, the first financial analysts to promote the concept of unburnable carbon, told DeSmog UK:
โThese companies must match rhetoric with real action and stop tinkering around the edges. Big oil is still ignoring the fundamental risk the โcarbon bubbleโ poses and clinging to orthodox growth strategies by cherry-picking BAU (business as usual) industry scenarios that perpetuate a belief in strong fossil fuel demandย growth.โ
So BP, Shell, Total, and their corporate friends are using the platform provided by the annual climate change conference to continue to push their agenda, which, as always, is to extract, burn, and sell moreย oil.
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