During the annual general meetings of BP and Royal Dutch Shell this week, it was obvious that Europe’s two largest oil and gas majors are following different paths on fighting climate change and on finding ways to tackle carbon emissions, as the Financial Times report.
Firstly, Shell informed that it will take responsibility for decreasing the net carbon impact from the fuels it produces, taking responsibility even for the emissions its customers produce when they burn oil and gas in their cars and homes.
Secondly, BP not taken responsibility for the emissions burnt by its customers, although they seem to be in line with the Paris climate agreement. Concerning BP’s support on climate change and in the protection of the environment, Helge Lund, BP’s Chairman, highlighted the importance of a faster transition to a low carbon energy system, as he quoted
When the longer carbon emissions keep on increasing, it will be harder to change the climate and will require a more painful transition for the world.
According to David Sheppard, Energy Editor in FT, Shell’s decision on taking responsibility on emissions seems sensible, as getting oil and gas out the ground and to market accounts for approximately 15% of the company’s emissions, with the other 85% coming when customers actually use their fuel.
Shell also announced its green investment plan in reducing CO2 emissions, in an attempt to protect the environment. The oil major plans to invest $300 million over the next three years, in achieving its aim of decreasing its Net Carbon Footprint by 2-3%. An option is to increase the amount of lower carbon gas the company produces relative to oil — today, its daily production of 3.7m barrels of oil equivalent is split roughly 50:50 between oil and gas.
On the other hand, BP noted that it also need to create a new carbon neutral businesses at an unprecedented rate and transform existing businesses.
FT addresses that both companies ask government to reassure them they will need to make investments, including carbon taxes.
According to Mr Sheppard, activists now challenge both oil majors, keeping in mind Greenpeace’s step on shutting down BP’s offices in London in light of protesting; The incident took place on May 20, when Greenpeace activists placed five heavy containers on the company’s entrances and protested against oil and gas explorations. Greenpeace said its activists would continue the protest until they receive an acceptable response from BP but by the evening most had been removed by the police.
The world’s largest funds are also conscious that the next generation of investors has grown up with warnings about climate change, and will be more concerned about the environment than predecessors.
