Is 'big oil' failing to react to economic changes and investor demand?

European companies 'better engaged in transition' than North American ones

Mike Sheen
clock • 5 min read

Despite intensifying investor pressure and urgent warnings on the need to diversify away from their core business, larger oil and gas companies look to be failing to meet the economic and environmental challenges, which could impact their long-term future success, research suggests.

In its most recent report on climate change, the UN said that in order to limit global warming to less than 1.5°C above pre-industrial levels it will require "rapid and far-reaching" transitions across the economy - especially in the energy sector. 2019 Outlook: Will oil price stay strong or 'drift sideways' after rollercoaster year? However, evidence suggests that oil majors are not taking the lead on this with research from the Carbon Disclosure Project (CDP) showing the proportion of capital expenditure on low-carbon investments is still small at some companies. Between 2010 and...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Commodities

On 8 March last year, LME suspended nickel trading after prices doubled to more than $100,000 per tonne, and retroactively cancelled $12bn of trades from the previous day.

London Metal Exchange wins legal case against nickel trading suspension

Brought by Elliot IM and Jane Street

Elliot Gulliver-Needham
clock 30 November 2023 • 1 min read
Janet Mui (pictured), head of market analysis at RBC Brewin Dolphin

RBC Brewin Dolphin's Janet Mui: Energy price volatility is here to stay

Energy price shocks

Janet Mui
clock 21 November 2023 • 4 min read
Four Graphs explaining oil and gas

Four Graphs explaining oil and gas

Four experts write

Investment Week
clock 15 November 2023 • 3 min read
Trustpilot