In the oil market the private sector counts for less than you might think. State-run oil behemoths sit on roughly two-thirds of the remaining reserves of discovered oil and gas globally
, long mismanaged by Venezuela’s left-wing dictatorship, to professionally run firms which are listed and, at least in principle, accountable to minority shareholders . Small wonder that they differ in their shade of brown, too.s are in Africa, Asia and Latin America. Most are poorly run and have smallish or unattractive reserves.
This record, combined with long-standing governance problems, is increasingly costing such firms the support of international companies that have historically supplied them with technical and financial muscle. By the calculations of Christyan Malek of JPMorgan Chase, a bank, the oil majors underwrite between 40% and 60% of investments made bys outside the Persian Gulf.
The most significant category sits somewhere in the middle. These are companies, mostly in the Gulf and Russia, which are blessed with low-cost, low-carbon and long-lived reserves that will outlast both less well-endoweds and the majors. They will keep pumping for years, even decades, to come. But some of them are trying to do it more cleanly.
Petrobras reckons that production of oil from its newer fields results in 40% less greenhouse-gas emissions per barrel than the global average. Rather than going big on renewables, the Brazilian company is further decarbonising oil operations with investments in all-electric production facilities and vessels. It recently secured a $1.3bn green loan, where the interest rate drops if the firm decarbonises, and has tied executive pay to emissions targets.
The middle group’s capital-spending plans, though they appear distinctly brown overall, also conceal small but interesting specks of green—especially if you zoom out from the companies’ own projects to those co-sponsored by other state entities. Take the. Its industry minister, Sultan al-Jaber, says that “we saw the writing on the wall 16 years ago.” That is when the country created Masdar, a pioneering clean-energy company which today has investments in 40 countries around the world.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
State of the Game: Hearthstone - one of the best games you shouldn’t playCovered in scuffs, fades, lumps and bulges and still one of the best games you shouldn’t play - our State of the Game series continues today, with Hearthstone:
Read more »
Dismal Job Market Drives Chinese Youths to State FirmsThe most educated generation in China’s history was supposed to blaze a trail towards a more innovative economy. Instead, about 15 million young people are estimated to be jobless, and many are lowering their ambitions
Read more »
Affordable Sources of Commercial Graphene for Energy ApplicationsA new review discusses the recent advances in high-quality graphene synthesis from various naturally available carbonaceous materials with a glimpse of their potential scalability for commercialization.
Read more »
A Closer Look At Haim’s Coordinated Concert Looks With Taylor SwiftThe Haim sisters break down their tour uniform, and what made last night’s Louis Vuitton look so special.
Read more »
UK government must do more to help with household energy bills, say MPs\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Read more »
South Africa to open up power generation to tackle energy crisis\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Read more »