Energy giants failing to prepare for world of lower oil and gas demand

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: The 2023 report "Crude Intentions II" by Carbon Tracker reveals that major oil and gas companies are incentivizing executives to increase fossil fuel production, conflicting with energy transition goals and climate policies
• Only one out of 25 top listed companies, Occidental Petroleum, is not aligned with this trend

🔭 The context: Despite the global shift towards renewable energy and the expected peak of fossil fuel demand by 2030, oil and gas firms continue to plan for production growth
• This approach contradicts the urgent need to limit global temperature rise to 1.5°C under the Paris Agreement

🌍 Why it matters for the planet: The continued emphasis on fossil fuel production exacerbates climate change and hinders efforts to transition to a sustainable energy future
• It poses significant risks to achieving global climate targets and exacerbates environmental crises

⏭️ What's next: The energy transition is accelerating, and there is a growing likelihood of peak demand for fossil fuels by the end of the decade 
• Oil and gas companies are advised to adjust their strategies and remuneration policies to align with declining demand and climate goals

💬 One quote: "The energy transition is accelerating, and oil and gas companies must plan for peaking demand for their product. Investors should be concerned executives are continued to be incentivised to grow production volumes," (Mike Coffin, Head of Oil, Gas and Mining at Carbon Tracker)

📈 One stat: Almost all of the 25 largest listed oil and gas companies analyzed are incentivizing production growth, despite the looming peak in fossil fuel demand

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