Despite the oil industry’s climate promises and increased spending on low-carbon technologies, companies are doubling down on what they know best.
Spending on new offshore oil projects over the next two years is expected to rise to levels not seen in a decade. writes POLITICO’s E&E News reporter Benjamin Storrow.
US oil giant Exxon Mobil is investing money in projects in Guyana and Brazil. The UK and Norway are investing heavily in the North Sea. And Saudi Arabia’s state oil giant is pouring money into a series of massive expansions abroad.
While oil majors are spending more on low-carbon ventures such as hydrogen and carbon capture, these projects are likely years away from turning a profit.
“People who expected oil companies to stop investing in oil are likely to be disappointed,” Kevin Book, managing director of analyst firm ClearView Energy Partners, told Ben.
The climate impact of all this new development will depend on how the oil is produced. The more companies control the excess natural gas, the less energy they will need to lift the oil from under the sea. The amount of pollution produced by global warming may depend on individual project operations. And these factors can vary greatly from one region to another.
But in general, more oil production is a recipe for more greenhouse gas emissions at a time when the world can’t afford it. scientists calculate that the world is nine years old at current pollution rates before global warming gets seriously worse and 30 years before it reaches catastrophic levels.
And both the United Nations Intergovernmental Panel on Climate Change and the International Energy Agency agree that new fossil fuel infrastructure is incompatible with achieving international climate goals.
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Today on the POLITICO Energy podcast: Karl Mathiesen breaks down the extensive United Nations report on global progress to curb global warming.
Low carbon technology
The Department of Energy has released roadmaps for industries and policymakers to bring three new clean technologies into the nation’s energy mainstream: advanced nuclear, clean hydrogen and long-term storage, writes David Iaconangelo.
Developed in part for private investors, the three reports lay out the main barriers for the three technologies along with possible solutions and approximate timelines for their emergence in the 2020s and beyond. In total, costs could top $200 billion by 2030.
GOP strategy
As they put the finishing touches on their massive energy package, House Republicans plan to press Democrats on a staple of the kitchen table: energy costs, write Kelsey Brugger and Jeremy Dillon.
Wrapping up a three-day retreat in Orlando, Florida, Republicans appeared to be scrambling to harangue Democrats on Capitol Hill next week over prices at the pump and grocery store.
Made in America
The Biden administration will release proposed guidance for national sourcing requirements for electric vehicles to qualify for the Clean Energy Incentives Act next week, writes Kelsey Tamborrino.
The $369 billion climate law that Biden signed into law last year limited credits to electric vehicles made from domestically produced minerals and batteries, angering European nations who complained that the rules violated trade agreements by denying the full tax credit.
Electric vehicle chargers actually rev up your engine and get your gears turning: In other words, we heard from several readers on Tuesday after our story about my colleague David Ferris’ EV road trip.
Here’s a sample of what readers think:
a reader he wonders why the federal government is spending billions on chargers when it might make more sense for local businesses to make the investment.
“My wife and I have two electric cars and we have made long trips in one of them. Almost every time we load up, we get out of the car and grab a coffee snack. I bought boots from an outlet and several other items while loading. It looks like our DOT could issue requests for proposals to businesses across the country that would benefit from customers charging their batteries off their place of business,” he wrote.
Another he said we should focus more on intra-city travel than long-distance travel, since most traffic, and therefore pollution, is urban.
A third reader said he is primarily concerned about chargers and access for middle- and low-income drivers who rely on used vehicles.
“An EV with an aging battery will not have anywhere near the range of a new EV,” he wrote. “The biggest problem will be the high-density areas without the ability to charge in off-street parking.”
Keep the comments coming, people! We love to hear your take.
Electric future: Women are less likely to buy electric vehicles than men. Here’s what’s holding them back.
Buildings: When it comes to heat pumps, bigger is not always better.
A sample of some of our best subscriber content.
North America has a nuclear waste problem which is nearly 150,000 metric tons and growing, with few long-term solutions for storing radioactive waste that takes thousands of years to decay.
General Electric industrial power is investing tens of millions of dollars in developing direct air capture technologies as it seeks to grow its carbon management business.
Louisiana’s largest utility is looking for an eleven-fold increase in its renewable energy portfolio, asking state regulators for the green light to build up to 3,000 megawatts of solar power.
That’s it for today folks! Thanks for reading.
