Bp, Exxon and Chevron. All the differences between the big names on post Covid policies
Because some experts see differences between US and EU energy companies on clean energy and climate change
The pandemic is accelerating the gap between European and American oil companies when it comes to climate change and clean energy. A fundamental aspect above all as regards the direction of investments and the returns that will be obtained, which will probably depend on the way the world faces climate change in the coming decades.
THE EXAMPLE OF BP
A giant like BP has announced, for example, that it will reduce oil and gas production by 40% by 2030 as part of its strategy to cut carbon emissions, the Washington Post reported. The move, originally scheduled for September, was accompanied by a dividend cut and a loss of $ 6.7 billion in the second quarter.
STRONG CONTRAST WITH EXXON AND CHEVRON
This change, which began before the pandemic but is now accentuated, is in stark contrast to that of the other American giants Exxon and Chevron. These companies are not making big strides towards renewable energy so far and are moving away from oil and gas.
STRATEGIC DIFFERENCES NEVER SEEN BETWEEN OIL COMPANIES
"In modern times, there has never been a greater strategic difference between large companies than today," said veteran analyst Dan Yergin, vice president of consulting firm IHS Markit . They are all looking at the same reality, but the way they define their role is very different. And it seems that the great differentiator is the Atlantic Ocean ”.
THE ZAMPINO OF THE CORONAVIRUS
Disruptions in economic activity around the world in response to the coronavirus stifled demand for oil at a time when the industry was already engulfed in a surplus of crude oil and in financial distress. "Now, the world could change permanently, moving society away from what has been a steadily growing demand for oil, despite growing concerns about its impact on the planet," is Axios' Amy Harder thought.
"The coronavirus crisis has suddenly accelerated the potential for oil demand to stabilize," said Martijn Rats, global oil strategist at Morgan Stanley. Consistently low oil prices are making investments in other sources more intriguing. The profitability of investments in renewable energy compared to oil and gas is much closer now ”.
COMPARISON WITH EUROPE
The comparison with Europe highlights how clear the gap with the Americans is: "If you are a European company, you are looking at much more aggressive government policies," said Yergin, Pulitzer Prize-winning author who is about to publish another book – “The New Map”: Energy, Climate and the Clash of Nations ”- next month. If Joe Biden wins and the Democrats take control of Congress, American companies could be in a similar boat.
According to Morgan Stanley's Rats, there are, ultimately, two competing schools of thought: “If you think there is still an important role for oil and gas and you should just stick to your work, then you end up aligning with views of the American majors. If you believe that climate change is a disruptive effect and that energy companies have to change with the times, then you end up doing what the European majors do ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/bp-exxon-e-chevron-tutte-le-diversita-tra-le-big-sulle-politiche-post-covid/ on Sat, 15 Aug 2020 04:51:59 +0000.