The world’s largest listed oil companies will undermine global climate targets unless they plan for a major decline in production, finds a new report from the financial think tank Carbon Tracker.
Axel Dalman, a Carbon Tracker Associate Analyst, spoke to ELN about the findings of the report which suggests 20 of the world’s largest listed oil and gas companies need to cut their production by 50% or more by the 2030s: “There’s a huge drop and most of the companies that claim to be net zero by 2050 still don’t recognise that they need to reduce production at all. So, this is obviously a very stark implication.
“Companies will risk investing about a trillion dollars into assets that will not be competitive and that will risk becoming stranded. And so again, that’s a very important point that companies need to think hard about what projects are compatible and low in the low carbon world and whether that capital can be better used instead.”
Mr Dalman said companies have not woken up to the “seismic implications’ of the IEA’s finding that no investment in new oil and gas production is needed if the world aims to limit global warming to 1.5°C.
Listen to the interview.