News, market analysis, investment scam prevention tips and more. Investors Diurnal is your financial and world news website. Get the latest breaking news 27/4 from all over the globe. Your ticket to successful wealth management.
ENERGY COMPANIES have no seat at the climate high table convened by President Joe Biden on April 22nd and 23rd, to which he has invited 40 other world leaders to discuss how to speed up the shift from dirty energy. From the sidelines, coal firms will scowl at efforts to curb demand in Asia and oil drillers wince at support for electric cars. Watching particularly closely will be those firms which have bet big on natural gas. As the energy transition gathers momentum, no fuel’s future is smokier than that of the least grubby hydrocarbon.Proponents see natural gas as the “bridge fuel” to a greener world. They include the five largest international oil companies: ExxonMobil, Chevron, Royal Dutch Shell, Total and BP. These supermajors saw gas rise from 39% of their combined hydrocarbon output in 2007 to 44% in 2019 (see chart 1). That year producers approved a record level of liquefied natural gas (LNG) capacity. Those projects will come online in a few years. Shell, which in 2016 paid $53bn for BG, a British gas behemoth, now says that its oil production peaked in 2019, but that it will expand its gas business with annual investments of about $4bn.