DM Monitoring
London: Last week, climate activists scored big against Western oil majors Royal Dutch Shell, ExxonMobil and Chevron, leaving those companies under pressure to cut carbon emissions faster. Other global oil giants were quick to seize on the events, as it means potentially more business for the likes of Russia’s Gazprom and Rosneft, the Abu Dhabi National Oil Company (Adnoc), and Saudi Arabia’s national oil company Saudi Aramco, as well as other members of the Saudi-led OPEC.
“Oil and gas demand is far from peaking and supplies will be needed, but international oil companies will not be allowed to invest in this environment, meaning national oil companies have to step in,” said Amrita Sen from Energy Aspects consultancy.
Climate activists scored a major victory with a Dutch court ruling requiring Royal Dutch Shell to drastically cut emissions, which in effect means cutting oil and gas output. The company will appeal.
The same day, the top two United States oil companies, Exxon Mobil Corp and Chevron Corp (CVX.N), both lost battles with shareholders who accused them of dragging their feet on climate change.
“It looks like the West will have to rely more on what it calls “hostile regimes” for its supply,” joked a high-level executive from Russia’s Gazprom oil and gas group, referring to energy companies around the world owned completely or mostly by the state.
Saudi Aramco, Adnoc and Gazprom all declined to comment. Oil major Rosneft, in which the Russian state has the biggest stake, also declined to comment.
A senior Saudi Aramco staffer said the court ruling would make it easier for OPEC to ramp up production.
“It is great for Aramco,” the staffer said.
