The Gorgon liquefied natural gas (LNG) and carbon capture and storage (CCS) facility, operated by Chevron Corp., on Barrow Island, Australia, on Monday, July 24, 2023.
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The head of the International Energy Agency has urged the oil and gas industry to invest more in clean energy and abandon the “illusion” that carbon capture technology is a solution to climate change.
IEA Executive Director Fatih Birol stated, ahead of the United Nations Climate Change Conference in Dubai next week, that the industry needs to commit to genuinely helping the world meet its energy needs and climate goals, releasing a statement.
Birol highlighted that oil and gas companies need to acknowledge the “uncomfortable truth” that a successful clean energy transition will require scaling back, rather than expanding, oil and gas operations.
According to Birol, just 1% of global investment in clean energy has come from oil and gas companies. The industry will need to invest 50% of capital expenditures in clean energy projects by 2030 to meet the goal of limiting climate change to 1.5 degrees Celsius.
The IEA report emphasizes that excessive reliance on carbon capture is a major pitfall in the energy transition, and that carbon capture technology is essential for achieving net zero emissions in some sectors, but it should not be used as a way to retain the status quo.
The necessary technology would require 26,000 terawatt hours of electricity to operate in 2050, more than total global demand in 2022, according to the IEA. It would also require $3.5 trillion in annual investment from today through mid-century, equivalent to the entire oil and gas industry’s annual revenue in recent years.
U.S. oil majors Exxon Mobil and Chevron are investing billions in carbon capture technology and hydrogen, while European majors Shell and BP have focused more on renewables such as solar and wind. These companies are also doubling down on fossil fuels through major acquisitions.
