Oil majors' fossil fuel production, exploration and project developments go against their green energy pledges, according to a study released by Texas A&M University.
The study, published in peer-reviewed scientific journal PLOS today, found that oil majors still need to formulate "concrete strategies to translate pledges into actions". It looked at quantitative and qualitative data over the 2009–20 period to see if BP, Chevron, ExxonMobil and Shell are decarbonising their businesses and shifting to clean energy. The study did not look into TotalEnergies' strategy.
An analysis of the four majors' financial behaviours "failed to show any major comprehensively transitioning its core business model away from fossil fuels", the study said. "Bar year-to-year fluctuations and influence of the pandemic, we did not observe a clear trend toward lower fossil fuel production, less business-model reliance on upstream earnings, and declining fossil fuel reserves."
Although the study found increased discourse about mitigating greenhouse gas (GHG) emissions and increasing clean energy business, it also found that oil majors have failed to come up with concrete plans to reduce scope 3 emissions, as well as methane emissions. The IEA said last month that methane leaks from oil and gas operations could be avoided at no net costs, because abatement investments amount to less than the value of the gas.
The study also highlighted a gap between European and US oil majors' ambitions, with the latter continuously exhibiting "defensive attitudes to renewables investment and the need to shift from fossil fuels". The study acknowledged the fact that BP and Shell announced new targets to achieve net zero emissions by 2050 last year, after announcing initial targets in 2019 and 2020, respectively. In comparison, Chevron unveiled a 2050 net zero upstream "aspiration" for Scope 1 and 2 emissions, while ExxonMobil set out an ambition to reach net zero emissions for operated assets by 2050 at the start of this year.
But the study concluded that none of the majors are on the way to a clean energy transition, adding that there is a need for more transparency on clean energy investments. "Until the three areas of discourse, actions and investment behaviour are brought into alignment, we conclude that accusations of greenwashing by oil majors are well-founded," the study said.
The pressure on the majors is increasing, with environmental organisations calling for clearer timelines for phasing out oil and gas. Environmental law firm ClientEarth earlier this month launched a case against TotalEnergies, accusing the French company of "misleading communications on its climate commitments". It has since brought a legal case against Shell's directors, holding them personally liable for failing to prepare the company for the energy transition. This comes after a Dutch court ruled last year that Shell must sharply reduce its CO2 emissions by the end of this decade.
