Big Oil Takes Separate Paths On Road To Decarbonization

Big Oil Takes Separate Paths On Road To Decarbonization

Share to Linkedin There is more than one way to set about decarbonizing an oil and gas giant. The European majors are diversifying away from oil and gas, making significant investments in renewables and have plans to invest all along the low-carbon value chain. They've also set net-zero 2050 emissions targets, a sending a strong message to stakeholders on the direction of travel. The U. S. majors are treading a more conventional path. ExxonMobil XOM and Chevron CVX are yet to set net-zero targets. Their strategy is all about hydrocarbons, but for a business that's more efficient, creates more value and emits less carbon. I asked Tom Ellacott, Senior Vice President Corporate Analysis, how he sees the U. S. companies' approach evolving. First, pressure is building on net-zero targets - even from within U. S. industry. Two of the biggest independents declared net-zero targets in Q4 2020 (ConocoPhillips COP , Scope 1 and 2 by 2050; Occidental, Scope 1 and 2 by 2040, Scope 3 by 2050). Other independents have already followed their lead. The influence of investor demands on environmental , social and governance (ESG) issues shouldn't be underestimated. U. S. government policy will be another catalyst. It's no