The environmental cost of state oil company success

The environmental cost of state oil company success

Two things to start: first, Brent crude prices hit $60 a barrel for the first time since last year's crash. And second, European oil majors continued their pivot to renewable energy as Total and BP submitted "staggering“ bids to acquire offshore wind rights in the UK.

Welcome to another Tuesday Energy Source. Today's first item is on the dilemma facing national oil companies: they must keep developing projects to support local economies, but these projects will worsen climate change. Our second asks if a phase of mega-merger mania “” akin to that at the turn of the century “” is about to grip the energy business. Meanwhile, electric vehicles are on the march.

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Pick one: the Paris agreement goals or state energy company success

The world's state owned energy companies are set to spend $1.9tn on new oil and gas projects by 2030. But $400bn of these investments require oil prices above $40 a barrel to break even “” and basically the failure of the Paris climate goals.

The actions of NOCs and their host governments have a direct effect on climate change. These companies produce