High oil and gas prices in the last two years have provided large revenues for the oil companies. In the third quarter of this year alone, a total of over NOK 170 billion was earned. And that is a halving from the same period last year. In recent weeks, the world has gotten some of the answer to what the companies will spend some of the money on: on October 11, ExxonMobil announced that it is buying Pioneer for $59.5 billion. On October 23, Chevron said it is buying Hess for $53 billion. Together, the two companies spend over NOK 1,260 billion on the acquisitions. Both acquisitions mean that the companies are betting that demand for oil and gas will remain high for quite some time, writes The Economist. Strong reactions – It’s clearly Halloween for the oil companies. Chevron’s latest results may be gimmicky for shareholders, but it’s gimmicky for American consumers, says Senator Ed Markey. Photo: AP The two acquired companies both have a large part of the values in shale oil fields in Texas and North Dakota. Shale oil is a form of oil that causes particularly large emissions of greenhouse gases when it is extracted. The acquisitions have led to strong reactions in the United States. – While our homes are being destroyed by storms exacerbated by climate change, Chevron and Exxon are betting big on a future based on fossil fuels. That’s what Senator Ed Markey from the Democratic Party writes on X/Twitter. He uses poker metaphors when talking about the companies. – We must force the big oil companies to throw away their cards before our future is destroyed, says Markey. Oil pumps belonging to Hess of North Dakota. The shale fields in the state have helped make the United States an oil exporter. Photo: Reuters Has invested in carbon capture – The acquisitions say something about the companies’ strategy. This means that they plan to be oil and gas companies for many years to come, says chief analyst at Nordea, Thina Saltvedt. Both companies say that they have also invested in climate-friendly measures. Exxon Mobil points out that in July they bought Denbury. It is an oil company that also engages in carbon sequestration. Denbury was bought for NOK 55 billion, less than a tenth of what ExxonMobil has now spent on Pioneer. Both Chevron and ExxonMobil are involved in what is called the Oil and Gas Climate Initiative. It is a collaboration between the world’s twelve largest oil companies on how they will work to contribute towards the climate goals. – Now it is permissible to ask about the credibility after they have made investments that make them even bigger players in oil and gas, says Saltvedt. Do not believe in decline Apart from a temporary decline during the pandemic, world oil production has risen steadily over the past 25 years. The International Energy Agency (IEA) said in a report last Tuesday that the world’s demand for fossil fuels will reach its peak in 2030. The investments of the oil companies show that they do not believe in the IEA’s calculations, writes the New York Times. Thina Saltvedt says that if you look at what the IEA says about how we can reach the 1.5 degree target, the energy sector is particularly important. – The acquisitions show that ExxonMobil and Chevron are moving in the opposite direction to the climate goals, says Saltvedt about the latest major investments. CO₂ in the atmosphere measured in parts per million particles (ppm)460 parts per million particles (ppm)? Click for an explanation of parts per million, abbreviated ppmGo to news’s Climate Status Why is the graph so wavy? This is about seasons. In summer, the amount of CO₂ decreases because plants and trees absorb CO₂ from the air. In winter, the plants die, the CO₂ escapes and the graph rises. Since there are more plants and trees in the northern hemisphere, the seasons here control the amount of CO₂ in the atmosphere. What is the problem with a lot of CO₂ in the atmosphere? The greenhouse effect makes the earth livable, but more greenhouse gases, such as CO₂, increase this effect and make the earth warmer . The graph starts in 1960 because this was the year when the world began to measure CO₂ systematically. It happened on Mauna Loa in Hawaii and the curve shows the measurements from there. Before the world became industrialized there was around 280 ppm CO₂ in the atmosphere (year 1700). The researchers found that out by analyzing ice core samples. Will there be less CO₂ in the atmosphere if emissions are cut? No, not immediately. If we cut emissions, the amount of CO₂ in the atmosphere will only increase more slowly. The reduction in emissions must be large and last for a long time before we can see an effect. Imagine that the atmosphere is a bathtub and the greenhouse gases are the water you fill in. Even if you turn off the tap, the bathtub will not run out of water. This is the case with greenhouse gases and CO₂. It takes a long time for CO₂ to break down in the atmosphere. This is the reason why the experts want technology that sucks out greenhouse gases from the atmosphere, in addition to us cutting emissions. The world’s politicians have decided that they will try to limit the warming of the world to 1.5 degrees, compared to how the temperature was before the industrial revolution. Then we must keep the amount of CO₂ in the atmosphere below 430 ppm, according to the UN’s climate panel.
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Oil giants spend over 1,200 billion on acquisitions – news Urix – Foreign news and documentaries
