Energy industry transformation undergoes adjustments
author: Ann
2025-04-15
Since BP admitted that its attempt at a green transition had failed, the wind in the energy industry has shown a one-sided trend - major oil companies have returned to the oil and gas business. In late February this year, BP announced that it would increase its investment in oil and gas production by 25% each year, while cutting 70% of its investment in businesses related to energy transition.
The energy giant is coming back strongly. According to the Financial Times, BP plans to launch 27 new oil and gas projects in the next five years. The company has just announced a final investment decision on the Trinidad and Tobago natural gas project, which is expected to start production in two years and reach a peak output of 62,000 barrels of oil equivalent per day. In addition, BP's $25 billion contract was recently approved by the Iraqi government to develop key oil fields in the Kirkuk region. On the other hand, British and Dutch energy giant Shell has made a relatively mild attempt to recognize the fact that any transition from hydrocarbons to relying on the weather (wind and solar power generation) is a high-risk bet. Although a Dutch court had ordered Shell to cut oil and gas production to reduce emissions, the company's wind and solar investments fell short of expectations and it subsequently successfully appealed, with the second instance court overturning the ruling.
The energy giant is coming back strongly. According to the Financial Times, BP plans to launch 27 new oil and gas projects in the next five years. The company has just announced a final investment decision on the Trinidad and Tobago natural gas project, which is expected to start production in two years and reach a peak output of 62,000 barrels of oil equivalent per day. In addition, BP's $25 billion contract was recently approved by the Iraqi government to develop key oil fields in the Kirkuk region. On the other hand, British and Dutch energy giant Shell has made a relatively mild attempt to recognize the fact that any transition from hydrocarbons to relying on the weather (wind and solar power generation) is a high-risk bet. Although a Dutch court had ordered Shell to cut oil and gas production to reduce emissions, the company's wind and solar investments fell short of expectations and it subsequently successfully appealed, with the second instance court overturning the ruling.
Shell recently updated its short-term plan, lowering its spending targets for the next three years and prioritizing the development of its natural gas business. Between 2025 and 2028, the energy giant plans to spend $20 billion to $22 billion annually, down from its $22 billion to $25 billion annual budget for 2023. In terms of production targets, Shell plans to achieve an annual sales growth of 4-5% in liquefied natural gas by 2030.
TotalEnergies is one of the exceptions to the failed transformation of the oil giants. The French energy group has pursued a diversified strategy of transitioning from oil and gas to low-carbon electricity, but what is commendable is that it has never neglected its core business while promoting the transformation.
TotalEnergies is one of the exceptions to the failed transformation of the oil giants. The French energy group has pursued a diversified strategy of transitioning from oil and gas to low-carbon electricity, but what is commendable is that it has never neglected its core business while promoting the transformation.
Meanwhile, the U.S. Federal Trade Commission (FTC) approved Chevron's $53 billion acquisition of Hess Corp. and its Guyana oil assets in January this year, although the acquisition was later questioned by ExxonMobil and faces further review. Judging from the strategic layout of industry giants, the peak of the oil industry is far from coming.
كاتم الصوت الشحوم خدمة الحياة كم ، مؤقتا لا يمكن أن تستخدم نوعية رديئة ؟
US-Iran negotiations begin, crude oil market affected by tariffs and negotiations
